Transjugular intrahepatic portosystemic stent shunt (TIPS) implantation is an intervention to reduce elevated portal pressure by implantation of a stent shunt between hepatic and portal vein by transjugular approach. Elevated portal pressure is mostly caused by cirrhosis of the liver but Budd-Chiari-syndrome, venoocclusive disease, and portal vein thrombosis can also be responsible. The main indications for TIPS implantation are intractable variceal hemorrhage, prophylaxis for recurrent variceal bleeding after failure of endoscopic prophylaxis, and prophylaxis for recurrent variceal bleeding from gastric varices in the fundus. New data show that treatment of refractory ascites using TIPS implantation also leads to improved patient survival. Primary bleeding prophylaxis is not an indication for TIPS implantation. Absolute contraindications are progressive liver failure, decompensation of the right ventricle, pulmonary hypertension, and higher degree hepatic encephalopathy. The main problems after TIPS implantation are a high rate of restenosis, which frequently requires reintervention with TIPS dilatation or reimplantation, and undesirable side effects in patients after TIPS implantation for indications without proven benefit. Due to a number of prospective randomized controlled trials, the indications and contraindications for TIPS are now well defined, thus leading to a reduction of side effects and a more precise use of this important therapeutic modality for portal hypertension.