Multibody system dynamics is based on classical mechanics and its engineering applications originating from mechanisms, gyroscopes, satellites and robots to biomechanics. Multibody system dynamics is characterized by algorithms or formalisms, respectively, ready for computer implementation. As a result simulation and animation are most convenient. Recent developments in multibody dynamics are identified as elastic or flexible systems, respectively, contact and impact problems, and actively controlled systems. Based on the history and recent activities in multibody dynamics, recursive algorithms are introduced and methods for dynamical analysis are presented. Linear and nonlinear engineering systems are analyzed by matrix methods, nonlinear dynamics approaches and simulation techniques. Applications are shown from low frequency vehicles dynamics including comfort and safety requirements to high frequency structural vibrations generating noise and sound, and from controlled limit cycles of mechanisms to periodic nonlinear oscillations of biped walkers. The fields of application are steadily increasing, in particular as multibody dynamics is considered as the basis of mechatronics.