Multivesicular endosomes or prevacuolar compartments (PVCs) are membrane-bound organelles that play an important role in mediating protein traffic in the secretory and endocytic pathways of eukaryotic cells. PVCs function as an intermediate compartment for sorting proteins from the Golgi apparatus to vacuoles, sending missorted proteins back to the Golgi from the PVC, and receiving proteins from plasma membrane in the endocytic pathway. PVCs have been identified as multivesicular bodies in mammalian cells and yeast and more recently in plant cells. Whereas much is known about PVC-mediated protein trafficking and PVC biogenesis in mammalian cells and yeast, relatively little is known about the molecular mechanism of plant PVCs. In this review, we summarize and discuss our understanding of the plant PVC and compare it with its counterparts in yeast and mammalian cells.