When heavy negative particles (, , , etc.) stop in matter, they usually form exotic atoms in highly excited states with principal quantum number where is the reduced mass of the exotic atom and is the electron mass. The exotic-atom formation is followed by an atomic cascade consisting of multistep transitions to lower atomic states. For hadronic atoms, the atomic cascade is a complete life history because the hadrons get absorbed by the nuclei with high probability before reaching the ground state. Muonic atoms (where the absorption is weak) de-excite to the ground state and engage in various reactions (muon catalyzed fusion, muon transfer, molecular formation) with initial conditions determined by the atomic cascade. In both cases, the atomic cascade can reveal important information about the properties of exotic atoms and reactions with atoms in excited states. This paper, supplementing the earlier reviews [1,2,3,4], focuses on the recent progress in theoretical studies of the atomic cascade in light muonic and pionic atoms.