Membrane interacting peptides of natural or synthetic origins serve a variety of biological purposes. They have been extensively studied for their involvement in immunity, diseases, and for their potential as medical therapeutics and research tools. In this review membrane interacting peptides are categorized into four groups according to their function: antimicrobial peptides, cell-penetrating peptides, channel forming peptides and amyloid peptides. A historical overview of the development, their functional mechanisms, and recent advances are presented for each of the groups. Considerable research is still devoted to this field of study and in this report a representative sample of the latest studies is presented. A set of common features among peptide groups emerges as the understanding of their action mechanisms increase. The possibility of a membrane centric general model for peptide-membrane interaction is also discussed. This review seeks to provide a unifying view of the field and promote the interaction between research groups working on peptides that have so far been studied as belonging to completely different fields.