  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.
