Epilepsy is the most common serious neurological disease. Seizures are refractory to medication in approximately 30% of patients with focal epilepsy, and surgical treatment is potentially curative should the epileptic focus be accurately localized. MRI has revolutionized the investigation of such patients; however, up to 20% of patients with refractory focal epilepsy have an undetermined etiological basis for their epilepsy despite extensive investigation. Diffusion imaging is an advanced MRI technique that is sensitive to the molecular displacement of water molecules and provides additional information on the microstructural arrangement of tissue. Both qualitative and quantitative analyses of the interictal and peri-ictal states are possible and provide valuable insights into the epileptic brain in vivo. Furthermore, advanced postacquisition processing can reveal additional information on, for example, anatomical connectivity. The description, application and limitations of diffusion imaging in epilepsy are the focus of this review. Future directions of research required in this area are also discussed in the context of existing literature.