Quantum-mechanical effects at the macroscopic level were first explored in Josephson-junction-based superconducting circuits in the 1980s. In recent decades, the emergence of quantum information science has intensified research toward using these circuits as qubits in quantum information processors. The realization that superconducting qubits can be made to strongly and controllably interact with microwave photons, the quantized electromagnetic fields stored in superconducting circuits, led to the creation of the field of circuit quantum electrodynamics (QED), the topic of this review. While atomic cavity QED inspired many of the early developments of circuit QED, the latter has now become an independent and thriving field of research in its own right. Circuit QED allows the study and control of light-matter interaction at the quantum level in unprecedented detail. It also plays an essential role in all current approaches to gate-based digital quantum information processing with superconducting circuits. In addition, circuit QED provides a framework for the study of hybrid quantum systems, such as quantum dots, magnons, Rydberg atoms, surface acoustic waves, and mechanical systems interacting with microwave photons. Here the coherent coupling of superconducting qubits to microwave photons in high-quality oscillators focusing on the physics of the Jaynes-Cummings model, its dispersive limit, and the different regimes of light-matter interaction in this system are reviewed. Also discussed is coupling of superconducting circuits to their environment, which is necessary for coherent control and measurements in circuit QED, but which also invariably leads to decoherence. Dispersive qubit readout, a central ingredient in almost all circuit QED experiments, is also described. Following an introduction to these fundamental concepts that are at the heart of circuit QED, important use cases of these ideas in quantum information processing and in quantum optics are discussed. Circuit QED realizes a broad set of concepts that open up new possibilities for the study of quantum physics at the macro scale with superconducting circuits and applications to quantum information science in the widest sense.