Breast MRI is a cutting-edge technology in the diagnosis and intervention of breast abnormalities. Over the last decade, breast MRI has evolved from a research field to a clinical field. Radiologists should understand the indications, how to obtain adequate images, and how to interpret and report their findings. Breast MRI is now used in the differentiation of benign from malignant mass, preoperative staging of breast cancer patients, assessment of tumor response to neoadjuvant chemotherapy, and evaluation of women with breast implants. It can also be used as a supplemental screening modality for high-risk women. Qualified radiologists and adequate MRI technique are crucial for the success of these purposes. This review is focused on the indication, standardized use of lexicon and categorization of breast MRI.