  Interference with atomic and molecular matter waves is a rich branch of
atomic physics and quantum optics. It started with atom diffraction from
crystal surfaces and the separated oscillatory fields technique used in atomic
clocks. Atom interferometry is now reaching maturity as a powerful art with
many applications in modern science. In this review we first describe the basic
tools for coherent atom optics including diffraction by nanostructures and
laser light, three-grating interferometers, and double wells on AtomChips. Then
we review scientific advances in a broad range of fields that have resulted
from the application of atom interferometers. These are grouped in three
categories: (1) fundamental quantum science, (2) precision metrology and (3)
atomic and molecular physics. Although some experiments with Bose Einstein
condensates are included, the focus of the review is on linear matter wave
optics, i.e. phenomena where each single atom interferes with itself.
