In this talk I will introduce recent progresses in studying physics of spin-orbit coupling in degenerate atomic gases. Realization of spin-orbit coupled quantum gases opens a new avenue in cold atom physics, and also brings out a lot of new physical problems. In particular, the interplay between spin-orbit coupling and inter-atomic interaction leads to many intriguing phenomena. For instance, in a bosonic system, it gives rise to interesting stripe superfluid phase, and in a fermionic system with attractive interactions, it significantly enhances BCS transition temperature. From the discussion of these examples, the key message is that spin-orbit coupling can help enhance the interaction effects, and make the interaction effects much more dramatic even in the regime where the interaction strength itself is small.