Show Current Location and Nearby Places and Route between two places using Google Maps API in Android

1. First go through this tutorial for getting familiar with Android Google Maps and this for API 2.

2. To retrive the current location of device see this answer or this another answer and for API 2

3. Then you can get places near by your location using Google Place API and for use of Place Api see this blog.

4. After getting Placemarks of near by location use this blog with source code to show markers on map with balloon overlay with API 2.

5. You also have great sample to draw route between two points on map look here in these links Link1 and Link2 and this Great Answer.

After following these steps you will be easily able to do your application. The only condition is, you will have to read it and understand it, because like magic its not going to be complete in a click.

Lots of answers so far, which are all excellent pointers to API's and tutorials. One thing I'd like to add is that I work out how far the markers are from my location using something like:

float distance = (float) loc.distanceTo(loc2);

Hope this helps refine the detail for your problem. It returns a rough estimate of distance (in m) between points, and is useful for getting rid of POI that might be too far away - good to declutter your map?

You can use google map Obtaining User Location here!

After obtaining your location(longitude and latitude), you can use google place api

This code can help you get your location easily but not the best way.

locationManager = (LocationManager) getSystemService(Context.LOCATION_SERVICE);
Criteria criteria = new Criteria();
String bestProvider = locationManager.getBestProvider(criteria, true);
Location location = locationManager.getLastKnownLocation(bestProvider);  

You have two options for displaying the Map

1. Use Maps Library for Android to render the Map
2. Use Maps API V3 inside a web view

For showing local POIs around a Lat, Long use Places APIs