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The present review will focus on recent development of exact- diagonalization (ED) methods that use Lanczos algorithm to transform large sparse matrices onto the tridiagonal form. We begin with a review of basic principles of the Lanczos method for computing ground-state static as well as dynamical properties. Next, generalization to finite-temperatures in the form of well established finite-temperature Lanczos method is described. The latter allows for the evaluation of temperatures static and dynamic quantities within various correlated models. Several extensions and modification of the latter method introduced more recently are analysed. In particular, the low-temperature Lanczos method and the microcanonical Lanczos method, especially applicable within the high- regime. In order to overcome the problems of exponentially growing Hilbert spaces that prevent ED calculations on larger lattices …