Reactions of xenon difluoride (XeF2) with alkanes, carbanions, alkenes and alkynes, aromatic and heteroaromatic compounds, carbonyl derivatives, benzyl alcohols, organic iodo compounds, organosulfur, selenium, tellurium, phosphorus, antimony, bismuth, silicon and tin compounds are reviewed. Greater emphasis has been placed on the synthetic details and utility. For each functional group, the most recent papers describing the reactivity of XeF2 are discussed in more detail. Research progress achieved during the period 1999-2004 is reviewed rather comprehensively. Also included are the syntheses of compounds containing C-Xe(II) bond employing xenon difluoride and its derivatives.