Liquid and solid particles in polar stratospheric clouds (PSCs) have been known to play a crucial role in the chemical loss of stratospheric ozone over the Antarctic and Arctic regions in late winter and early spring. The stratospheric aerosol and cloud particles provide the sites where fast heterogeneous chemical reactions convert inactive halogen reservoir species into potential ozone destroying radicals. The sedimentation of nitric acid-containing PSC particles irreversibly removes HNO3 gas (denitrification) from the lower stratosphere, which slows the return of chlorine to its inactive forms, resulting in more severe stratospheric ozone destruction. Although these clouds have been investigated extensively during the past decade using in situ field observation, laboratory experiment and modeling studies, the detailed microphysics processes under cold stratospheric conditions are still uncertain. This paper reviews the recent advances in our understanding of PSCs.