An overview of the most recent experimental and modelling efforts on powder formation in reactive plasmas is given. The physics and chemistry of these dusty plasmas and their fundamental mechanisms leading to the production of nanometre-sized particles and their successive agglomeration leading to micrometre-sized particles are reviewed. The central role of particle charging and of charge fluctuations regarding the particle agglomeration is emphasised. Finally, the influence of the dust particles on the plasma parameters is described and an outlook on the most eminent problems towards the understanding of the reactive, dusty plasmas is given.