Abstract
We review the recent theoretical and observational developments concerning the interaction of the Large Magellanic Cloud (LMC) with the Milky Way and its neighbourhood. An emerging picture is that the LMC is a fairly massive companion (10-20% of the Milky Way mass) and just passed the pericentre of its orbit, likely for the first time. The gravitational perturbation caused by the LMC is manifested at different levels. The most immediate effect is the deflection of orbits of stars, stellar streams, or satellite galaxies passing in the vicinity of the LMC. Less well known but equally important is the displacement (reflex motion) of central regions of the Milky Way about the centre of mass of both galaxies. Since the Milky Way is not a rigid body, this displacement varies with the distance from the LMC, and as a result, the Galaxy is deformed and its outer regions (beyond a few tens kpc) acquire a net velocity with respect to its centre. These phenomena need to be taken into account at the level of precision warranted by current and future observational data, and improvements on the modelling side are also necessary for an adequate interpretation of these data.