This paper presents an overview of the current state of the art in the analysis of discontinuity-induced bifurcations (DIBs) of piecewise smooth dynamical systems, a particularly relevant class of hybrid dynamical systems. Firstly, we present a classification of the most common types of DIBs involving non-trivial interactions of fixed points and equilibria of maps and flows with the manifolds in phase space where the system is non-smooth. We then analyse the case of limit cycles interacting with such manifolds, presenting grazing and sliding bifurcations. A description of possible classification strategies to predict and analyse the scenarios following such bifurcations is also discussed, with particular attention to those methodologies that can be applied to generic n-dimensional systems.