Sensory stimuli often have rich temporal and spatial structure. One class of stimuli that are common to visual and auditory systems and, as we show, the electrosensory system are signals that contain power in a narrow range of temporal (or spatial) frequencies. Characteristic of this class of signals is a slower variation in their amplitude, otherwise known as an envelope. There is evidence suggesting that, in the visual cortex, both narrowband stimuli and their envelopes are coded for in separate and parallel streams. The implementation of this parallel transmission is not well understood at the cellular level. We have identified the cellular basis for the parallel transmission of signal and envelope in the electrosensory system: a two-cell network consisting of an interneuron connected to a pyramidal cell by means of a slow synapse. This circuit could, in principle, be implemented in the auditory or visual cortex by the previously identified biophysics of cortical interneurons.parallel processing ͉ sensory systems ͉ stimulus envelopes N arrowband signals (i.e., containing power in a narrow range of frequencies) are an important class of naturalistic stimuli for visual and auditory systems and have associated with them a stimulus envelope, a slow, time-varying contrast or modulation of a sinusoidal carrier arising naturally from, for example, interference between two or more sinusoidal oscillations with similar frequencies. Amplitude-modulated signals have no power at the frequencies of the modulation; instead, they have power centered on the carrier frequency with side bands whose structure depends on the frequency content of the modulation or envelope (1). Because the actual signal contains no power at the envelope frequencies, a system that can extract information about the envelope must use nonlinear processing. An asymmetry in the single-neuron inputoutput transfer, such as rectification (1), will generate power at the envelope frequencies (2, 3). Recent studies show that visual cortical neurons in cats respond to both low spatial frequency signals and the low-frequency spatial envelopes of high-frequency signals and also suggest that information about stimuli and their envelopes take separate and mutually exclusive linear and nonlinear pathways to reach these cortical neurons (4-11). The cellular and network basis of these parallel cortical computations is not, however, understood.Apteronotus leptorhynchus generates a sinusoidal electric organ discharge (EOD) that produces an electric field around its body. Recent field studies have shown that A. leptorhynchus and related species forage in groups (12) (E. W. Tan and E. S. Fortune, personal communication). Although individual A. leptorhynchus maintain a stable EOD frequency (13), the species has a frequency range of Ϸ700-1,000 Hz. Two fish with widely spaced EOD frequencies will generate a high-frequency envelope of their EOD that is referred to as an amplitude modulation (AM) or beat. Additional fish can superimpose a slowly varying contrast on this high-...