A substantial proportion of individuals in the general population have tinnitus and 1-3% suffer from severe tinnitus affecting sleep, concentration, and mood. For a majority of patients with tinnitus degree of hearing loss plays a significant role. Several potential causes and aggravating factors have been suggested, but there is still not a single theory available to explain why tinnitus is so bothersome for some individuals. Recent research has investigated neural correlates of tinnitus, mainly involving primary and secondary auditory cortex. Several treatments have been tested with modest results. However, for the alleviation of tinnitus-related distress there is now empirical support for the use of cognitive-behavioural treatment methods. Future efforts should focus on prevention of noise-induced hearing loss and ways to foster habituation to tinnitus.