Astrophysical fluids are turbulent a fact which changes the dynamics of many key processes, including magnetic reconnection. Fast reconnection of magnetic field in turbulent fluids allows the field to change its topology and connections. As a result, the traditional concept of magnetic fields being frozen into the plasma is no longer applicable. Plasma associated with a given magnetic field line at one instant is distributed along a different set of magnetic field lines at the next instant. This diffusion of plasmas and magnetic field is enabled by reconnection and therefore is termed “reconnection diffusion”. The astrophysical implications of this concept include heat transfer in plasmas, advection of heavy elements in interstellar medium, magnetic field generation etc. However, the most dramatic implications of the concept are related to the star formation process. The reason is that magnetic fields are dynamically important for most of the stages of star formation. The existing theory of star formation has been developed ignoring the possibility of reconnection diffusion. Instead, it appeals to the decoupling of mass and magnetic field arising from neutrals drifting in respect to ions entrained on magnetic field lines, i.e. through the process that is termed “ambipolar diffusion”. The predictions of ambipolar diffusion and reconnection diffusion are very different. For instance, if the ionization of media is high, ambipolar diffusion predicts that the coupling of mass and magnetic field is nearly perfect. At the same time, reconnection diffusion is independent of the ionization but depends on the scale of the turbulent eddies and on the turbulent velocities. In the paper we explain the physics of reconnection diffusion both from macroscopic and microscopic points of view, i.e. appealing to the reconnection of flux tubes and to the diffusion of magnetic field lines. We make use of the Lazarian and Vishniac (Astrophys. J. 517:700, 1999) theory of magnetic reconnection and show that this theory is applicable to the partially ionized gas. We quantify the reconnection diffusion rate both for weak and strong MHD turbulence and address the problem of reconnection diffusion acting together with ambipolar diffusion. In addition, we provide a criterion for correctly representing the magnetic diffusivity in simulations of star formation. We discuss the intimate relation between the processes of reconnection diffusion, field wandering and turbulent mixing of a magnetized media and show that the role of the plasma effects is limited to “breaking up lines” on small scales and does not affect the rate of reconnection diffusion. We address the existing observational results and demonstrate how reconnection diffusion can explain the puzzles presented by observations, in particular, the observed higher magnetization of cloud cores in comparison with the magnetization of envelopes. We also outline a possible set of observational tests of the reconnection diffusion concept and discuss how the application of the new concept changes our understanding of star formation and its numerical modeling. Finally, we outline the differences of the process of reconnection diffusion and the process of accumulation of matter along magnetic field lines that is frequently invoked to explain the results of numerical simulations.