Capsule endoscopy was conceived in the late 1980s by an electrico-optical engineer and first used in human beings clinically during the last 5 years. Already it has changed the management of small bowel diseases and is beginning to be used in the esophagus. Developments are under way to use the capsule in a wider range of clinical conditions. The literature has advanced from case series to outcome studies. The utility of capsule endoscopy is reviewed here.