The interaction of microwave energy with the atmosphere is considered in detail. Absorption, scattering and emission properties of the gases, and hydrometeors are reviewed. Geophysical parameter retrieval techniques for integrated parameters and profiles are discussed. Although this paper is meant to be a review paper, however many topics were not discussed in any details. It is recommended that those who are interested to pursuit this subject further should refer to a set of three volumes of book entitled ”Microwave Remote Sensing” (Ulaby et al. 1981, 1982 and 1986).For deriving integrated atmospheric parameters and profiles of temperature and moisture, a large arsenal of instrumental and mathematical techniques is available. At present, there is no single sensor yields all the information that is required. Combining data from active, passive and in situ sensors is probably the most promising way, in the nearest future, to improve the quality of retrieval. Cost of sensors and availability of data is always an issue, especially for the operational algorithms. For research, a much wider range of possibilities is available. Therefore, new and innovative retrieval techniques will be developed in the research environment.