Diffuse optical imaging is a medical imaging technique that is beginning to move from the laboratory to the hospital. It is a natural extension of near-infrared spectroscopy (NIRS), which is now used in certain niche applications clinically and particularly for physiological and psychological research. Optical imaging uses sophisticated image reconstruction techniques to generate images from multiple NIRS measurements. The two main clinical applications--functional brain imaging and imaging for breast cancer--are reviewed in some detail, followed by a discussion of other issues such as imaging small animals and multimodality imaging. We aim to review the state of the art of optical imaging.