This review describes where we are today in light of the dust and gas properties and their relation to star formation, in low metallicity galaxies of the local universe following recent surveys from sensitive infrared space telescopes, mainly Spitzer and Herschel space observatories as well as ground-based observations of the molecular gas reservoir. Models to interpret the ISM properties are gaining sophistication in order to account for the wide range of valuable observational diagnostics that we have today to trace the different gas phases, the broad range of photometry we have, from mid-infrared to submillimetre dust emission and the various galactic size scales that we can sample today. This review summarizes the rich multi-phase observations we can exploit today, and the multi-phase modeling approach to interpret the observations.