Non-invasive brain stimulation is a versatile tool to modulate psychological processes via alterations of brain activity, and excitability. It is applied to explore the physiological basis of cognition and behavior, as well as to reduce clinical symptoms in neurological and psychiatric diseases. Neuromodulatory brain stimulation via transcranial direct currents (tDCS) has gained increased attention recently. In this review we will describe physiological mechanisms of action of tDCS, and summarize its application to modulate psychological processes in healthy humans and neuropsychiatric diseases. Furthermore, beyond giving an overview of the state of the art of tDCS, including limitations, we will outline future directions of research in this relatively young scientific field.