Protein transport and sorting in the secretory and endocytic pathways via vesicles is required for organelle biogenesis, constitutive and regulated secretion and constitutive and regulated endocytosis. It is essential for a multicellular organism and the function of its specialised cell types that the multiple transport and sorting events are highly accurate. They determine the protein and lipid composition of specialised compartments, receptor protein function and membrane homeostasis. This review describes the individual events involved in the process of vesicle mediated protein transport and sorting and summarizes the knowledge about the function of proteins and lipids orchestrating the process.