  In dense stellar systems, dynamical interactions between objects lead to
frequent formation of exotic stellar objects, unusual binaries, and systems of
higher multiplicity. They are especially important for the formation of low
mass X-ray binaries (LMXBs), which are not only formed 100 times more
efficiently than in the field, but also have a puzzling dependence on
metallicity. In this contribution we review how compact objects are formed and
retained, the mechanisms of dynamical formation and the specifics of the
evolution of mass-transferring binaries with neutron stars and black holes in
globular clusters - those two kinds of compact objects have different favored
paths to become luminous in X-ray. We describe how stellar evolution affects
ostensibly purely dynamical formation, producing the observed metallicity
dependence for LMXBs. We also discuss the next puzzle to be solved on our
journey to understand the link between LMXBs and millisecond pulsars formation.
