Meniere's disease, with its characteristic symptom triad of vertigo, balance and hearing disorders has yet to have its pathophysiology outlined conclusively. Any theory must elucidate all aspects of the natural progression, including vestibular and auditory symptoms. While the central dogma revolves around endolymphatic hydrops, this theory is not without laws, such as its inability to explain all the physiological changes seen in patients, or the often absence of symptoms. While several degenerative changes are observed in temporal bone histopathology, they do not necessarily explain the sequence of events in the development and progress of the disease. This chapter explores the pathophysiology of the disease, focusing on the hydrops theory, while presenting evidence for and against it. Various changes in the inner ear physiology such as pressure changes, ionic disequilibrium, endocochlear potentials; in human and animal models are described. Alternative explanations for symptoms are discussed. This chapter touches briely upon etiology associated with Meniere's (and hydrops), and aims to assist a deeper understanding of the relationship of the process to clinical and experimental indings. A clear understanding of the process guides not only the clinical management to improve quality of life but also the direction of future research endeavors.