In situ and operando spectroscopic techniques are crucial for our understanding of complex heterogeneously catalyzed reactions. Under actual reaction conditions, however, many phenomena such as adsorption, (by)-product formation, and desorption of various species in different phases occur simultaneously, leading to crowded spectra that are difficult to interpret. About 15 years ago, modulation excitation spectroscopy (MES) was introduced to the heterogeneous catalysis community and has been increasingly applied since then. The periodic perturbation of a given system, in combination with phase-sensitive detection (PSD) analysis, significantly reduces noise, distinguishes between active and spectator species, and enables extraction of kinetic information. In this review article, we discuss the origin and theory of MES, summarize different application examples (with an emphasis on heterogeneous catalysis), and suggest future developments of the technique.