The aim of this review article is to present historical developments of mechanics of saturated granular soils in relation to the liquefaction phenomenon, as well as to analyze the present state of this subject in connection with practically important problems. The first part is an introduction to mechanics of liquefaction, in order to make this paper self-contained. Then, some basic empirical findings are described. In the third part, the development of theoretical approaches to liquefaction-related problems, such as cyclic loading compaction and pore pressure accumulation, or cyclic loading degradation of shearing resistance, is presented. The fourth part deals with the presentation of the methods applied for solving practically important problems and those that have not been solved satisfactorily. The last part of this paper presents some of the most important conclusions and suggestions regarding further research. There are 152 references cited in this review article, and a supplementary bibliography of 45 publications is also included.