The purpose of this article is to review the basic principles and clinical applications of dynamic contrast-enhanced MRI in the musculoskeletal system. This method of physiologic imaging provides clinically useful information by depicting tissue vascularization and perfusion, capillary permeability, and composition of the interstitial space. Different imaging, evaluation, and postprocessing techniques are described. The most important applications in the musculoskeletal system are identification of areas of viable tumor for biopsy, tissue characterization, and monitoring of preoperative chemotherapy. Practical guidelines for performing a dynamic contrast-enhanced MR examination are proposed.