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Magnetic reconnection in strongly magnetized astrophysical plasma environments is believed to be the primary process for fast energy release and particle energization. Currently, there is strong interest in relativistic magnetic reconnection in that it may provide a new explanation for high-energy particle acceleration and radiation in strongly magnetized astrophysical systems. We review recent advances in particle acceleration and reconnection physics in the magnetically dominated regime. Much discussion is focused on the physics of particle acceleration and power-law formation as well as the reconnection rate problem. In addition, we provide an outlook for studying reconnection acceleration mechanisms and kinetic physics in the next step. [ABSTRACT FROM AUTHOR]