Abstract: I review the effects of the ongoing interaction between the Milky Way and the Large Magellanic cloud on the dynamics of various objects in the Galactic halo: stellar streams, satellite galaxies and distant halo stars. The LMC significantly perturbs orbits of some of these objects, and if not taken into account, biases the inference on the Galactic potential from the equilibrium models. I introduce an orbit-rewinding scheme for compensating these perturbations, and present the estimates of the Milky Way mass profile from the modelling of stellar streams and satellite galaxies.
I then discuss the possibility that the Magellanic Clouds are currently experiencing their second encounter with the Milky Way. This scenario is compatible with the current observational constraints on the Galactic potential and the LMC velocity, and provides a possible explanation for the kinematic coherency among the Galactic satellites (known as the VPOS).