The enhanced growth of plants infected by vesicular–arbuscular (VA) mycorrhizal fungi results primarily from improved uptake of soil phosphate. Extra phosphate reaches the root through the fungal hyphae, which tap the soluble P in soil beyond the phosphate-depletion zone near the root surface. This mechanism can explain the many corrrelations between root geometry and mycotrophy and other nutritional effects of VA mycorrhizae such as increased uptake of zinc and copper ions. Recently VA mycorrhizae have been shown to increase the levels of chlorophyll and some hormones in plants and to alleviate water stress. Legumes are now receiving considerable attention because VA mycorrhiza affects nitrogen fixation in them indirectly by its action on P uptake. In this review the physiology of the VA mycorrhizal symbiosis is discussed in categories reflecting successive stages in its formation and function: (i) activation of the VA mycorrhizal propagules; (ii) penetration and initial infection of the host plant; (iii) spread of infection in roots; (iv) response of the plant; the components and mechanisms of VA mycorrhizal systems; (v) benefits to the fungus; carbon sinks; and (vi) imbalances in the symbiosis. It is suggested that studies on the physiological complexities of VA mycorrhizal associations should take more account of the biological diversity of VA mycorrhizal fungi and the wide range of host–endophyte–soil specificities.