Many of the clouds important to the Earth’s energy balance, from the tropics to the Arctic, contain liquid water. Longwave and shortwave radiative fluxes are very sensitive to small perturbations of the cloud liquid water path (LWP) when the LWP is small (i.e., < 100 g m-2; clouds with LWP less than this threshold will be referred to as “thin”). Thus, the radiative properties of these thin liquid water clouds must be well understood to capture them correctly in climate models. We review the importance of these thin clouds to the Earth’s energy balance, and explain the difficulties in observing them. In particular, because these clouds are thin, potentially mixed-phase, and often broken (i.e., have large 3-D variability), it is challenging to retrieve their microphysical properties accurately. We describe a retrieval algorithm intercomparison that was conducted to evaluate the issues involved. The intercomparison included eighteen different algorithms to evaluate their retrieved LWP, optical depth, and effective radii. Surprisingly, evaluation of the simplest case, a single-layer overcast stratocumulus, revealed that huge discrepancies exist among the various techniques, even among different algorithms that are in the same general classification. This suggests that, despite considerable advances that have occurred in the field, much more work must be done, and we discuss potential avenues for future research.