Within the past a few years, transformation optics has emerged as a new research area, since it provides a general methodology and design tool for manipulating electromagnetic waves in a prescribed manner. Using transformation optics, researchers have demonstrated a host of striking phenomena and devices; many of which were only thought possible in science fiction. In this paper, we review the most recent advances in transformation optics. We focus on the theory, design, fabrication and characterization of transformation devices such as the carpet cloak, "Janus" lens and plasmonic cloak at optical frequencies, which allow routing light at the nanoscale. We also provide an outlook of the challenges and future directions in this fascinating area of transformation optics.