Electroencephalogram (EEG) is an efficient tool in exploring human brains. It plays a very important role in diagnosis of disorders related to epilepsy and development of new interaction techniques between machines and human beings,namely,brain-computer interface (BCI). The purpose of this review is to illustrate the recent researches in EEG processing and EEG-based BCI. First,we outline several methods in removing artifacts from EEGs,and classical algorithms for fatigue detection are discussed. Then,two BCI paradigms including motor imagery and steady-state motion visual evoked potentials (SSMVEP) produced by oscillating Newton’s rings are introduced. Finally,BCI systems including wheelchair controlling and electronic car navigation are elaborated. As a new technique to control equipments,BCI has promising potential in rehabilitation of disorders in central nervous system,such as stroke and spinal cord injury,treatment of attention deficit hyperactivity disorder (ADHD) in children and development of novel games such as brain-controlled auto racings. Electroencephalogram (EEG) is an efficient tool in exploring human brains. It plays a very important role in diagnosis of disorders related to epilepsy and development of new interaction techniques between machines and human beings, namely, brain-computer interface (BCI). of this review is to illustrate the recent researches in EEG processing and EEG-based BCI. First, we outline several methods in removing artifacts from EEGs, and classical algorithms for fatigue detection are discussed. Then, two BCI paradigms including motor imagery and steady- Finally, BCI systems including wheelchair controlling and electronic car navigation are elaborated. As a new technique to control equipments, BCI has promising potential in rehabilitation of disorders in central nervous system , such as stroke and spinal cord injury, treatment of attention deficit hyperactivity disorder (ADHD) in children and development of novel games such as brain-controlled auto racings.