Atomistic methods, such as molecular dynamics and direct simulation Monte Carlo, constitute a powerful and growing set of techniques for fluid-dynamics simulation. The more fundamental nature of such methods, which exhibit nonlinear transport effects and small-scale fluctuations, extends their modelling accuracy to a significantly wider range of scales and regimes than the more traditional Navier–Stokes-based continuum fluid-simulation techniques. In this paper, we describe the current state of the art in atomistic fluid simulation, from both a theoretical and a computational standpoint, and outline the advantages and limitations of such methods. In addition, we present an overview of some recent atomistic-simulation results on fluid instabilities and on the physical scaling of atomistic techniques. Finally, we suggest possible avenues of future research in the field.