Recent advances in the physiology of hippocampal interneurons are summarized in this article. These findings suggest that through their interconnectivity inhibitory interneurons can maintain large-scale oscillations at various frequency ranges (theta, gamma, and 200-Hz bands). We suggest that networks of inhibitory interneurons within the forebrain impose coordinated oscillatory ''contexts'' for the ''content'' carried by networks of principal cells. These oscillating inhibitory networks may provide the precise temporal structure necessary for ensembles of neurons to perform. specific functions, such as memory trace formation and retrieval. In addition, synaptic inhibition is shown to reduce the somadendritic backpropagation of sodium spikes and to prevent the occurrence of calcium spikes in dendrites. These observations indicate that interneurons are in an excellent position to control neuronal plasticity and allow synaptic transmission either with or without long-term modification of synaptic strength.