Status of lattice calculations of hadron matrix elements along with CP violation in B and in K systems is reviewed. Lattice has provided useful input which, in conjunction with experimenatl data, leads to the conclusion that CP-odd phase in the CKM matrix plays the dominant role in the observed asymmetry in B → ψK s . It is now quite likely that any beyond the SM, CP-odd, phase will cause only small deviations in B-physics. Search for the effects of the new phase(s) will consequently require very large data samples as well as very precise theoretical predictions. Clean determination of all the angles of the unitarity triangle therefore becomes essential. In this regard B → KD 0 processes play a unique role. Regarding K-decays, remarkable progress made by theory with regard to maintenance of chiral symmetry on the lattice is briefly discussed. First application already provide quantitaive information on B K and the ∆I = 1/2 rule. The enhancement in ReA 0 appears to arise solely from tree operators, esp. Q 2 ; penguin contribution to ReA 0 appears to be very small. However, improved calculations are necessary for ǫ ′ /ǫ as there the contributions of QCD penguins and electroweak penguins largely seem to cancel. There are good reasons, though, to believe that these cancellations will not survive improvements that are now underway. Importance of determining the unitarity triangle purely from K-decays is also emphasized.
I IntroductionWith important input from the lattice along with the classic results of indirect CP violation in K L → ππ, the asymmetric B-factories with measurements of CP asymmetry in B → ψK s are providing valuable support to the CKM paradigm of CP violation [1]. It is now clear that the CP-odd phase in the CKM matrix is the dominant source of CP violation in B → ψK s . However, as is well known essentially compelling theoretical arguements suggest that new CP-odd phase(s) 0