AbstractWe review the fundamentals and the recent developments in understanding of common envelope physics. We report specifically on the progress that was made by the consideration of the recombination energy. This energy is found to be responsible for the complete envelope ejection in the case of a prompt binary formation, for the delayed dynamical ejections in the case of a self-regulated spiral-in, and for the steady recombination outflows during the transition between the plunge-in and the self-regulated spiral-in. Due to different ways how the recombination affects the common envelope during fast and slow spiral-ins, the apparent efficiency of the orbital energy use can be different between the two types of spiral-ins by a factor of ten. We also discuss the observational signatures of the common envelope events, their link a new class of astronomical transients, Luminous Red Novae, and to a plausible class of very luminous irregular variables.