Cytokinesis is the final stage in the cell cycle when physical barriers between the two daughters are established. It is only after the proper execution of this key event that daughter cells become independent entities. In the recent years Schizosaccharomyces pombe has emerged as a powerful model organism for the study of cytokinesis since it divides by medial fission through the use of an actomyosin-based contractile-ring apparatus, which very much resembles cleavage in animal cells. The last decade has seen an explosion in our understanding of the molecules and mechanisms that operate during cytokinesis. The ability to manipulate fission yeast by the methods of genetics, cell biology, and biochemistry, coupled with the availability of the sequence of the entire genome and a well-characterized mitotic cell cycle should aid further progress. In this review, we discuss mechanisms controlling key steps important for cytokinesis in fission yeast, including selection of the division site, assembly of the actomyosin ring, signaling events that coordinate mitotic exit with cytokinesis, and assembly of new membranes and the division septum to separate the cells.