Abstract: The interaction of plasma with liquids has led to various established industrial implementations as well as promising applications, including high-voltage switching, chemical analysis, nanomaterial synthesis, and plasma medicine. Along with these numerous accomplishments, the physics of plasma in liquid or in contact with a liquid surface has emerged as a bipartite research field, for which we introduce here the term “plasma physics of liquids.” Despite the intensive research
investments during the recent decennia, this field is plagued by some controversies and gaps in knowledge, which might restrict further progress. The main difficulties in understanding revolve around the basic mechanisms of plasma initiation in the liquid phase and the electrical interactions at a plasma-liquid interface, which require an interdisciplinary approach. This review aims to provide the wide applied physics community with a general overview of the field, as well as the opportunities for interdisciplinary research on topics, such as nanobubbles and the floating water bridge, and involving the research domains of amorphous semiconductors, solid state physics, thermodynamics, material science, analytical chemistry, electrochemistry, and molecular dynamics simulations. In addition, we provoke awareness of experts in the field on yet underappreciated question marks. Accordingly, a strategy for future experimental and simulation work is proposed.