When speaking about project finance people are often confused because they don’t understand why project finance should be discussed as a separate topic since it is, seemingly, a part of almost every other topic. Chapter 10 explains that project financing has a very special meaning in finance and is often related to terms like non-recourse debt, limited-recourse debt, asset-backed securities, and many others. The chapter begins by discussing some famous examples of project financing. Then it argues that project financing can help solve asymmetric information and agency problems including underinvestment problems, free cash flow problems, and empire-building problems. Setting a new project as a new independent project and issuing non-recourse debt will provide a strong incentive for managers. In the end the chapter discusses recent literature.