Analysis is performed of the contemporary views on the effect of ion etching (ion-beam milling and reactive ion etching) on physical properties of HgCdTe and on the mechanisms of the processes responsible for modification of these properties under the etching. Possibilities are discussed that ion etching opens for defect studies in HgCdTe, including detecting electrically neutral tellurium nanocomplexes, determining background donor concentration in the material of various origins, and understanding the mechanism of arsenic incorporation in molecular-beam epitaxy-grown films.