Ions are formed in the terrestrial atmosphere (TA) and in interstellar clouds (ISC) by the action of solar/stellar UV and cosmic rays on the ambient neutral atmospheres. The precursor ions so formed develop largely via gas‐phase ion chemistry from the simple ions characteristic of the ambient atmospheres to the observed, more complex ions. In the upper TA and in ISC, only bimolecular ion chemistry occurs. In the tenuous upper TA, the ion types remain simple, O+, O 2+, and NO+ being dominant, and similarly in the tenuous diffuse ISC, ions such as H+, H22+, C+, and CH+ are dominant. At the high pressures of the lower TA, termolecular association reactions are important, and the initial ions, e.g., O 2+ and N 2+ formed by cosmic ray ionization are quickly converted to very complex cluster ions of the type H+(H2O)n (bases)m with bases including NH3 and CH3CN, and a parallel negative ion chemistry develops from the primary negative ions O− and O 2− producing ions like NO 3−(H2O)n(acid)m with acids HNO3 and H2SO4. In the dense ISC, the ion chemistry proceeds to produce polyatomic ions from the most important initial ions C+, H 3+, and CH 3+, and the process of radiative association, the bimolecular analog of termolecular association, is important in producing, for example, ions such as CH 3+ M, where M are the common observed interstellar molecules such as the carboxy, cyano, and amino molecules, which are formed via this ion chemistry. The major ion neutralization process in the upper TA and in ISC is positive ion–electron recombination, which limits the degree of ionization in these regions, whereas in the lower TA, where negative ions balance the positive ions, the charge neutralization process is ion–ion recombinarion. © 1996 John Wiley & Sons, Inc.