Domain observation and domain theory must go together in the study of magnetic microstructure. This chapter introduces domain theory. The focus is on applicationoriented procedures rather than on the well-established fundamentals. A more detailed analysis is offered where it illustrates characteristic mechanisms. In this case intermediate steps are presented as a guideline to encourage the reader to reproduce the line of arguments. In Sect. 3.2 the free energy of a magnet is presented. The principle that this energy must be a minimum leads to the micromagnetic equations and their dynamic generalizations. A discussion of the origin of domains from the viewpoint of theory (Sect. 3.3) is followed by two sections, which deal with cases for which no knowledge of domain walls is necessary. Phase theory (Sect. 3.4) is adequate for the calculation of the reversible magnetization curve of large, bulk crystals. Small particle switching theory (Sect. 3.5) applies to small particles that are too small to contain regular domain walls. For all intermediate cases domain walls become important. Their properties are summarized in Sect. 3.6, which also includes a discussion of substructures of domain walls and of wall dynamics. In the last part of the chapter (Sect. 3.7) a number of commonly occurring domain features-like domain branching or dense stripe domains-are discussed from a theoretical point of view. This section ends with a thorough discussion of a seemingly simple, but actually rather complex model case: the Néel block.Sketch 3.12.