This article describes the variational and fixed-node diffusion quantum Mon
te Carlo methods and how they may be used to calculate the properties of ma
ny-electron systems. These stochastic wave-function-based approaches provid
e a very direct treatment of quantum many-body effects and serve as benchma
rks against which other techniques may be compared. They complement the les
s demanding density-functional approach by providing more accurate results
and a deeper understanding of the physics of electronic correlation in real
materials. The algorithms are intrinsically parallel, and currently availa
ble high-performance computers allow applications to systems containing a t
housand or more electrons. With these tools one can study complicated probl
ems such as the properties of surfaces and defects, while including electro
n correlation effects with high precision. The authors provide a pedagogica
l overview of the techniques and describe a selection of applications to gr
ound and excited states of solids and clusters.