The properties of magnetic insulators containing orbitally degenerate transition metal ions (Jahn--Teller ions) are discussed. The Jahn-Teller effect in these insulators causes structural phase transitions, lowers the lattice symmetry, and gives rise to an orbital ordering. Various interactions responsible for these effects are discussed: the electron-lattice, quadrupole-quadrupole, and exchange interactions. The mutual effects of the orbital ordering and the magnetic properties of corresponding compounds are discussed. The exchange interaction in the cases of twofold and threefold orbital degeneracy is discussed. The effect of a magnetic field on the orbital and magnetic structure and the temperature dependence of the exchange interaction are studied. The properties of several representative compounds containing Jahn-Teller ions are discussed.