Quaternions are still largely misunderstood and often considered an “exotic” signal representation without much practical utility despite the fact that they have been around the signal and image processing community for more than 30 years now. The main aim of this article is to counter this misconception and to demystify the use of quaternion algebra for solving problems in signal and image processing. To this end, we propose a comprehensive and objective overview of the key aspects of quaternion representations, models, and methods and illustrate our journey through the literature with flagship applications. We conclude this work by an outlook on the remaining challenges and open problems in quaternion signal and image processing.