A significant amount of research has focused on the role of diffusion-weighted MRI (DW-MRI) in the management of patients with prostate cancer. Although uncertainties remain, a clearer picture of where this technique fits into clinical practice is now available. A combination of DW-MRI and T2-weighted MRI (T2W-MRI) demonstrates improved accuracy for lesion detection and localization compared with T2W-MRI alone, and has been suggested as a tool to guide tissue biopsy. DW-MRI could also have roles in active surveillance, evaluating treatment efficacy, and predicting disease recurrence. Furthermore, DW-MRI offers the exciting possibility of gathering information about tumor characteristics and aggressiveness in a noninvasive manner. Validation in large prospective multicenter trials is critical if this technique is to be integrated into current management algorithms for prostate cancer.