Cytokinesis is a complex cellular process that leads to a physical separation of two daughter cells. The key to a successful cytokinesis is a coordinated reorganization of cellular cytoskeleton and membrane trafficking pathways. Consequently, Rab GTPases recently emerged as major regulators of cellular division. Rabs belong to a superfamily of small monomeric GTPases that regulate a diverse array of cellular functions. Rabs in particular are well-established regulators of membrane transport and have been shown to mediate several membrane transport steps including vesicle formation, molecular motor-dependent vesicle transport and targeting of transport vesicles and organelles to their correct destinations. Significantly, several Rab GTPases also have been shown to function in regulating cell division. In this review, we discuss latest findings about the function of Rabs and polarized membrane transport during different steps of cytokinesis as well as during the final stage of cell division known as abscission.