MRI has shown its potential in prostate cancer (PCa) imaging. MRI is able to demonstrate zonal anatomy with excellent contrast resolution. Furthermore it can detect PCa dependent not only on tumor-size, histological grading, PSA levels, but also on technical equipment and reader's experience. Non-palpable PCas in the inner and outer gland can be detected by this technique. Another potential is that MRI is helpful for tumor staging and treatment planning as well as response evaluation. Besides the morphological information, MRI can give functional information based on metabolic evaluation with proton magnetic resonance spectroscopy and of tumor angiogenesis based on dynamic contrast-material enhanced MRI and diffusion-weighted imaging. In addition MRI can be used for targeted prostate biopsies; however, the clinical practicability is questionable. Furthermore many data about the value of MRI for PCa diagnosis are based on transrectal ultrasound (TRUS) biopsy findings. Since there is lack of accuracy in fusing MRI images with TRUS images these limit the results of MRI for cancer diagnosis. However, in the future MRI may play an additional role in planning and monitoring minimally invasive PCa therapies. Although, MRI of the prostate seems to be useful, nevertheless this method remains expensive and lacks availability regarding the oncoming requirements.