As important as memory is to our daily functions, the ability to extract fundamental features and commonalities from various episodic experiences and to then generalize them into abstract concepts is even more crucial for both humans and animals to adapt to novel and complex situations. Here, we report the neural correlates of the abstract concept of nests or beds in mice. Specifically, we find hippocampal neurons that selectively fire or cease to fire when the mouse perceives nests or beds, regardless of their locations and environments. Parametric analyses show that responses of nest cells remain invariant over changes in the nests' physical shape, style, color, odor, or construction materials; rather, their responses are driven by conscious awareness and physical determination of the categorical features that would functionally define nests. Such functionality-based abstraction and generalization of conceptual knowledge, emerging from episodic experiences, suggests that the hippocampus is an intrinsic part of the hierarchical structure for generating concepts and knowledge in the brain.bed cell ͉ episodic memory ͉ nest cell ͉ semantic memory ͉ hippocampus F ormation of concepts and abstract knowledge has been traditionally considered to be exclusive hallmarks that define humans and possibly other highly intelligent nonhuman primates (1, 2). Such high levels of abstract cognition play an essential role in guiding our adaptive behaviors in everyday life (3-8). For example, when we check into a hotel, the concept of ''bed'' in our brains can help us identify the bed effortlessly among various furniture in the room despite the fact that the bed could be drastically distinct in terms of its physical shape or style from the ones that we have used in our homes. Currently, it is not clear how our brain actually generates and encodes such abstract concepts from daily experiences.Just like the human's ability to recognize beds, we hypothesize that nonprimate animals such as rodents and birds should also possess the ability to recognize a refuge or object that can serve as their nests. Because a nest or bed can vary widely in its physical appearances (e.g., distinct physical shapes and styles, color, and construction materials, etc.), we further hypothesize that internal representations of those objects are likely to require the brain to encode abstract knowledge and concepts into categories beyond the specific shape or form of each item.To search for the underlying neural correlates, we focused on the mouse hippocampus, because this structure is crucial for the formation of not only memories of events, people, and places (often known as episodic memory) (9-14) but also memories of knowledge, facts, and concepts (also known as semantic memory), as indicated by neurological studies of human patients (3,5,15,16). Indeed, our recent large-scale recording suggests that some of the memory-coding units in the hippocampus seem to be intrinsically involved in extracting commonality and abstract general features from various epi...