Capillary pressure concepts can be used to evaluate reservoir rock quality, expected reservoir fluid saturations and depths of fluid contacts, thickness of transition zone, seal capacity, and pay versus nonpay, and to approximate recovery efficiency. Mercury-injection capillary pressure is typically favored for geological applications, such as inferring the size and sorting of pore throats. The differences between mercury injection and withdrawal curves can provide information on recovery efficiency. The height above free water level can be determined by comparing capillary pressure data to hydrocarbon shows and measured fluid saturations. Capillary pressure data can also be used to distinguish reservoir from nonreservoir rocks and pay from nonpay on the basis of nonwetti g-phase saturations. Other applications of capillary pressure data include relating capillary pressure to absolute and relative permeabilities, and using porosimetry to investigate pore-level heterogeneity. This paper reviews geological applications and interpretation of capillary pressure in reservoir studies.