We review the latest findings on extra-solar planets and their potential of having environmental conditions that could support Earth-like life. Focusing on planets orbiting red dwarf (RD) stars, the most abundant stellar type in the Milky Way, we show that including RDs as potential life supporting host stars could increase the probability of finding biotic planets by a factor of up to a thousand, and reduce the estimate of the distance to our nearest biotic neighbour by up to 10. We argue that binary and multiple star systems need to be taken into account when discussing habitability and the abundance of biotic exoplanets, in particular RDs in such systems. Early considerations indicated that conditions on RD planets would be inimical to life, as their habitable zones would be so close to the host star as to make planets tidally locked. This was thought to cause an erratic climate and expose life forms to flares of ionizing radiation. Recent calculations show that these negative factors are less severe than originally thought. It has also been argued that the lesser photon energy of the radiation of the relatively cool RDs would not suffice for oxygenic photosynthesis (OP) and other related energy expending reactions. Numerous authors suggest that OP on RD planets may evolve to utilize photons in the infrared. We however argue, by analogy to the evolution of OP and the environmental physiology and distribution of land-based vegetation on Earth, that the evolutionary pressure to utilize infrared radiation would be small. This is because vegetation on RD planets could enjoy continuous illumination of moderate intensity, containing a significant component of photosynthetic 400–700 nm radiation. We conclude that conditions for OP could exist on RD planets and consequently the evolution of complex life might be possible. Furthermore, the huge number and the long lifetime of RDs make it more likely to find planets with photosynthesis and life around RDs than around Solar type stars.