I studied Lie Groups and Lie Algebras as part of my Masters back in the 1970s. Although very elegant and beautiful, it seemed to its own little world, I never saw the connection with other branches of mathematics (or at least from my course).
Can anyone explain to me how Lie Groups fit in—in a nutshell—or provide me with some useful references I can chew over?
There are many connections to other branches of mathematics. Many interesting answers have been given to the MO-question "Why study Lie algebras". It is also worth to have a look at the prerequisites for the Langlands program, where Lie groups and Lie algebras are on top of the list.