The role of map invariance is examined within the context of the dynamic state reconstruction problem for nonlinear discrete-time systems. In particular, the key notion of invariant manifold for maps in nonlinear discrete-time dynamics is shown to be conceptually insightful and technically quite effective to address important issues related to the deterministic observer-based nonlinear state estimation problem ill the discrete-tune domain. As a necessary,first methodological,step, the problem of quantitatively characterizing the asymptotic long-term behavior of nonlinear discrete-time systems with a skew-product structure using the notion of map invariance is revisited. The formulation of this problem can be naturally realized through a system of invariance functional equations (FEs), for which a set of existence and uniqueness conditions of a solution is provided. Under a certain set of conditions, it is shown that the invariant manifold computed attracts all system trajectories/orbits, and therefore, the asymptotic long-term dynamic behavior of the system is determined through the restriction of the discrete-titre system dynamic's oil the invariant manifold. Within the above analytical framework, the nonlinear full-order observer design problem in the discrete-time domain is considered, appropriately formulated and all interpretation of previous work oil the problem is attempted through the notion of invariant manifolds for maps. Furthermore, this framework allows the development of a new approach to the nonlinear reduced-order observer design problem for