Important tools of the emerging nanotechnology area are the microscopes that enable spatially localized measurement and manipulation. Fundamental capabilities of scanning probe microscopy (SPM) are described. Several following fundamental physical phenomena are described: electron tunneling and transport through confined regions, atomic structure, surface atom diffusion, spatially localized surface spectroscopy, atomic forces, nanoscale friction surface elasticity and surface magnetism. Brief discussions include applications in materials characterization and biological macromolecules.