Magnetic resonance (MR), a comparatively new imaging method in Canada, is based on physical principles that are different from all current imaging methods. An understanding of these principles is therefore essential to appreciate the clinical capabilities and limitations of MR. Because MR is a multiparameter imaging method, the challenge of choosing appropriate imaging sequences must be addressed. The technical development of anatomical image formation is now almost complete, so future research will focus on the use of MR to obtain more than just spatial information. The quantitative measurement of relaxation times, chemical composition, flow and spectra hold great promise in extending the capabilities of MR beyond those of other imaging methods.