We review the formation and evolution of fossil groups and clusters from both the theoretical and the observational points of view. In the optical band, these systems are dominated by the light of the central galaxy. They were interpreted as old systems that had enough time to merge all the M* galaxies within the central one. During the last two decades many observational studies were performed to prove the old and relaxed state of fossil systems. The majority of these studies, that spans a wide range of topics including halos global scaling relations, dynamical substructures, stellar populations, and galaxy luminosity functions, seem to challenge this scenario. The general picture that can be obtained by reviewing all the observational works is that the fossil state could be transitional. Indeed, the formation of the large magnitude gap observed in fossil systems could be related to internal processes rather than an old formation.
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