What happens in our brain when we make a decision? What triggers a neuron to send out a signal? What is the neural code? This textbook for advanced undergraduate and beginning graduate students provides a thorough and up-to-date introduction to the fields of computational and theoretical neuroscience. It covers classical topics, including the Hodgkin-Huxley equations and Hopfield model, as well as modern developments in the field such as generalized linear models and decision theory. Concepts are introduced using clear step-by-step explanations suitable for readers with only a basic knowledge of differential equations and probabilities, and are richly illustrated by figures and worked-out examples. End-of-chapter summaries and classroom-tested exercises make the book ideal for courses or for self-study. The authors also give pointers to the literature and an extensive bibliography, which will prove invaluable to readers interested in further study.