References Explained
PHP Manual

What References Do

PHP references allow you to make two variables to refer to the same content. Meaning, when you do:

<?php
$a 
=& $b;
?>

it means that $a and $b point to the same content.

Note: $a and $b are completely equal here. $a is not pointing to $b or vice versa. $a and $b are pointing to the same place.

Note: If arrays with references are copied, their values are not dereferenced. This is valid also for arrays passed by value to functions.

Note: If you assign, pass, or return an undefined variable by reference, it will get created.

Example #1 Using references with undefined variables

<?php
function foo(&$var) { }

foo($a); // $a is "created" and assigned to null

$b = array();
foo($b['b']);
var_dump(array_key_exists('b'$b)); // bool(true)

$c = new StdClass;
foo($c->d);
var_dump(property_exists($c'd')); // bool(true)
?>


The same syntax can be used with functions that return references, and with the new operator (in PHP 4.0.4 and later):

<?php
$bar 
=& new fooclass();
$foo =& find_var($bar);
?>

Since PHP 5, new returns a reference automatically, so using =& in this context is deprecated and produces an E_STRICT message.

Note: Not using the & operator causes a copy of the object to be made. If you use $this in the class it will operate on the current instance of the class. The assignment without & will copy the instance (i.e. the object) and $this will operate on the copy, which is not always what is desired. Usually you want to have a single instance to work with, due to performance and memory consumption issues.
While you can use the @ operator to mute any errors in the constructor when using it as @new, this does not work when using the &new statement. This is a limitation of the Zend Engine and will therefore result in a parse error.

Warning

If you assign a reference to a variable declared global inside a function, the reference will be visible only inside the function. You can avoid this by using the $GLOBALS array.

Example #2 Referencing global variables inside functions

<?php
$var1 
"Example variable";
$var2 "";

function 
global_references($use_globals)
{
    global 
$var1$var2;
    if (!
$use_globals) {
        
$var2 =& $var1// visible only inside the function
    
} else {
        
$GLOBALS["var2"] =& $var1// visible also in global context
    
}
}

global_references(false);
echo 
"var2 is set to '$var2'\n"// var2 is set to ''
global_references(true);
echo 
"var2 is set to '$var2'\n"// var2 is set to 'Example variable'
?>

Think about global $var; as a shortcut to $var =& $GLOBALS['var'];. Thus assigning another reference to $var only changes the local variable's reference.

Note: If you assign a value to a variable with references in a foreach statement, the references are modified too.

Example #3 References and foreach statement

<?php
$ref 
0;
$row =& $ref;
foreach (array(
123) as $row) {
    
// do something
}
echo 
$ref// 3 - last element of the iterated array
?>


The second thing references do is to pass variables by reference. This is done by making a local variable in a function and a variable in the calling scope referencing the same content. Example:

<?php
function foo(&$var)
{
    
$var++;
}

$a=5;
foo($a);
?>

will make $a to be 6. This happens because in the function foo the variable $var refers to the same content as $a. For more information on this, read the passing by reference section.

The third thing references can do is return by reference.


References Explained
PHP Manual