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Interface
Non-overlapping and non-blocking UI delivers unsurpassed workflow
Flexible and fully configurable window layout with as many screen setups as you prefer
Undo support on all levels
Anti-aliased fonts with international translation support
Any window space can be easily switched to any window type (curve editor, NLA, 3D view etc)

Built-in text editor for annotations and editing Python scripts
Graphical user interface for Python scripts
Fully scriptable UI with custom themes
Consistent interface across all platforms

Physics and Particles
Particle system can be atached to any mesh object. Control methods include weight painting, textures, curve guides, wind and vortex effects. Particles can be deflected by moving geometry
Hair strands can be created by a static particle system, supporting all particle control methods
Fluid simulator with fully animated inflow, outflow, obstacle and fluid objects. Gravity and viscosity settings can also be animated. Supports vector blur and is integrated with the particle system
Realtime soft body solver integrated in mesh, lattice, curve and text objects. Supports collision detection and particle field effects like Wind or Vortex, soft bodys can also be baked for faster playback/rendering
Game engine rigid body physics can be easily baked into animation curves

Realtime 3D/Game Creation
Graphical logic editor for defining interactive behavior without programming
Collision detection and dynamics simulation now support Bullet Physics Library. Bullet is an open source collision detection and rigid body dynamics library developed for Play Station 3
Shape types: Convex polyhedron, box, sphere, cone, cylinder, capsule, compound, and static triangle mesh with auto deactivation mode
Discrete collision detection for RigidBody simulation
Support for in-game activation of dynamic constraints
Full support for vehicle dynamics, including spring reactions, stiffness, damping, tyre friction etc
Python scripting API for sophisticated control and AI, fully defined advanced game logic
Support all OpenGLTM lighting modes, including transparencies, Animated and reflection-mapped textures
Support for multimaterials, multitexture and texture blending modes, per-pixel lighting, dynamic lighting, mapping modes, GLSL vertexPaint texture blending, toon shading, animated materials, support for Normal Maping and Parallax Mapping
Playback of games and interactive 3D content without compiling or preprocessing
Audio, using the SDL toolkit
Multi-layering of Scenes for overlay interfaces

Modeling
A range of 3D object types including polygon meshes, NURBS surfaces, bezier and B-spline curves, metaballs, vector fonts (TrueType, PostScript, OpenType)
Very fast Catmull-Clark subdivision surfaces with optimal iso-lines display and sharpness editing
Full multiresolution sculpting capabilities with 2D bitmap/3D procedural brushes (Paint, Smooth, Pinch, Inflate, Grab) supporting symmetry
Modifier stack deformers such as Lattice, Curve, Armature or Displace
Mirror modifier with middle vertices clipping and automatic deletion of inner faces
Non destructive real time Boolean and Array modifiers
Mesh modeling based on vertex, edge and/or face selection
Smooth soft selection editing tools for organic modeling
Python scripting access for custom tools

Rendering
Fast inbuilt raytracer
Oversampling, motion blur, post-production effects, fields, non-square pixels
Tile-based and fully threaded
Render layers and passes
Render baking to UV maps and object to object baking (full render, ambient occlusion, normals, textures)
Render engine tightly integrated with the node compositor
Halo, lens flares and fog effects
Vector motion-blur post-process effect (using node compositor)
Realistic defocus (DOF) post-process effect (using node compositor)
Edge rendering for toon shading
Interactive preview rendering panel in any 3d view
Ambient Occlusion
Approximate Global Illumunination
Export scripts available for external renderers such as Renderman, Povray, Virtualight, Lux, Indigo and V-Ray - See Resources for a full list.

Home Page - http://www.blender.org/