The properties of transition metal compounds are largely determined by nontrivial interplay of different degrees of freedom: charge, spin, lattice, and also orbital ones. Especially rich and interesting effects occur in systems with orbital degeneracy. For example, they result in the famous Jahn-Teller effect, leading to a plethora of consequences for static and dynamic properties, including nontrivial quantum effects. In the present review, we discuss the main phenomena in the physics of such systems, paying central attention to the novel manifestations of those. After shortly summarizing the basic phenomena and their descriptions, we concentrate on several specific directions in this field. One of them is the reduction of effective dimensionality in many systems with orbital degrees of freedom due to the directional character of orbitals, with the concomitant appearance of some instabilities that lead in particular to the formation of dimers, trimers, and similar clusters in a material. The properties of such cluster systems, which are largely determined by their orbital structure, are discussed in detail, and many specific examples of those in different materials are presented. Another big field that has acquired special significance relatively recently is the role of the relativistic spin-orbit interaction. The mutual influence of this interaction and the more traditional Jahn-Teller physics is treated in detail in the second part of the review. In discussing all of these questions, special attention is paid to novel quantum effects.