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Lattice reduction is a powerful concept for solving diverse problems involving point lattices. Signal processing applications where lattice reduction has been successfully used include global positioning system (GPS), frequency estimation, color space estimation in JPEG pictures, and particularly data detection and precoding in wireless communication systems. In this article, we first provide some background on point lattices and then give a tutorial-style introduction to the theoretical and practical aspects of lattice reduction. We describe the most important lattice reduction algorithms and comment on their performance and computational complexity. Finally, we discuss the application of lattice reduction in wireless communications and statistical signal processing. Throughout the article, we point out open problems and interesting questions for future research.