The excellent soft-tissue contrast and multiplanar imaging capabilities of MR imaging have led to its emergence as the most significant advance in the imaging of musculoskeletal tumors. MR imaging is the modality of choice for local staging, evaluating response to preoperative chemotherapy, and long-term follow-up in bone tumors. MR imaging is the most effective modality for both primary staging of soft-tissue malignancy and detecting recurrences. This article reviews the role of conventional spin echo techniques versus newer techniques, and then discusses the indications in the diagnosis, staging, evaluation of preoperative chemotherapy, and detection of recurrences in bone and soft-tissue tumors.