Over many years, a detailed picture of the phase transitions in phospholipid monolayers at the air-water interface has been constructed from extensive studies of the force-area, viscoelastic and surface potential properties of phospholipid monolayers, yet the microscopic nature of the transitions has remained obscure. Recent investigations have focused specifically on these aspects. Through the use of fluorescence microscopy, electron diffraction and X-ray scattering experiments, in combination with data obtained by classical methods, a wealth of new information regarding the properties of monolayers undergoing phase transitions has been generated. Direct observation of fluid-solid phase coexistence at the air-water interface has been achieved with fluorescence microscopy and on solid supports with electron microscopy. The fluid-solid coexistence region has been studied most thoroughly to date, but regions of gas-fluid and fluid-fluid phase coexistence have also been detected. Numerous factors govern the properties of the coexistence region: however, the prominent features can be explained in terms of a competition between forces: long-range electrostatic forces and short-range attractive forces. In this review these recent experimental findings and theoretical interpretations are summarized.