The displacement of a species from a habitat by actions of another is the most severe outcome of interspecific interactions. This review focuses on recent developments in the understanding of (a) ecological mechanisms that lead to displacements, (b) how outcomes of interspecific interactions are affected by the context of where and when they occur, and (c) impacts of displacements. Displacements are likely to escalate as their primary initiating factors—the spread of non-native species and environmental change—continue at unprecedented rates. Displacements typically result from interactions of multiple mechanisms, not all of which involve direct competition. Various biotic and abiotic factors mediate these mechanisms, so variable outcomes occur when the same species interact in different environments. Though replacement of one species by another has particular relevance to pest management and conservation biology, the cascading effects that displacements have in managed and natural systems are critical to understand.