Many-body dissipative particle dynamics (MDPD) is a novel coarse-grained numerical method that originated from dissipative particle dynamics. In the MDPD system, a density-dependent repulsive interaction and an attractive term are introduced into a conservative force, enabling the formation of vapor–liquid coexistence. In the last two decades, the MDPD is becoming a powerful tool to study various interfacial problems at mesoscale due to its Lagrangian and adaptive features. In the present paper, we review the developments in the theoretical models and applications for the MDPD. First, the MDPD theoretical backgrounds of single- and multi-component system are introduced. Then, the parameter analysis and mapping protocols in the MDPD are discussed. Furthermore, recent applications based on the MDPD, including droplet and microbubble dynamics, evolution of liquid bridges, capillary wetting, polymer solutions, and phase change, are revisited with some comments. Finally, we summarize several unsolved issues in the MDPD and outline its future developments.