Recent progress in using the scanning tunneling microscope (STM) for manipulation of individual atoms and molecules is reviewed. Topics include - build-up of artificial nanostructures by lateral manipulation (pulling, pushing, sliding) - determination of physical properties like electron phase relaxation lengths in artificial structures - manipulation and contacting of complex molecules as well as manipulation into parts of molecules with consequences to molecular electronics - induction of all steps of chemical reactions with tips funcionalized by vertical manipulation - investigation of electronic and vibrational influences upon electron induced formation of ice clusters - experiences with attempts to transfer manipulation techniques from metal surfaces to thin insulating films. * In collaboration with: Gerhard Meyer (IBM ZRL), Francesca Moresco, Karina Morgenstern, Ludwig Bartels (UC Riverside), Kai-Felix Braun, Stefan Falsch (PDI-Berlin), Saw-Wai Hla (Ohio State Univ.), Reinhold Koch (PDI-Berlin), Jascha Repp (IBM ZRL), Jens Schulz (PDI-Berlin), Sven Zaphel (Createc)