The surface and interface sensitive nonlinear optical technique of second-harmonic generation (SHG) is a very useful diagnostic in studying surface and interface properties in thin film systems and can provide relevant information during thin film processing. An important aspect when applying SHG is the interpretation of the SHG response. In order to utilize the full potential of SHG during materials processing it is necessary to have a good understanding of both the macroscopic and the microscopic origin of the SHG response, particularly in thin film or multilayer systems where the propagation of radiation is another important aspect that should be considered carefully. A brief theoretical overview on the origin of the SHG response and a d...