Navigating a complex environment is assumed to require stable cortical representations of environmental stimuli. Previous experimental studies, however, show substantial ongoing remodeling at the level of synaptic connections, even under behaviorally and environmentally stable conditions. It remains unclear, how these changes affect sensory representations on the level of neuronal populations during basal conditions and how learning influences these dynamics. Our approach is a joint effort between the analysis of experimental data and theory. We analyze chronic neuronal population activity data – acquired by out collaborators in Mainz – to describe population activity dynamics during basal dynamics and during learning (fear conditioning). The data analysis is complemented by the analysis of a circuit model investigating the link between a neural network’s activity and changes in its underlying structure. Using chronic two-photon imaging data recorded in awake mouse auditory cortex, we reproduce previous findings that responses of neuronal populations to short complex sounds typically cluster into a near discrete set of possible responses. This means that different stimuli evoke basically the same response and are thus grouped together into one of a small set of possible response modes. The near discrete set of response modes can be utilized as a sensitive and robust means to detect and track changes in population activity over time. Doing so we find that sound representations are subject to a significant ongoing remodeling across the time span of days under basal conditions. Auditory cued fear conditioning introduces a bias into these ongoing dynamics, resulting in a differential generalization both on the level of neuronal populations and on the behavioral level. This means that sounds that are perceived similar to the conditioned stimulus (CS+) show an increased co-mapping to the same response mode the CS+ is mapped to. This differential generalization is also observed in animal behavior, where sounds similar to the CS+ result in the same freezing behavior as the CS+, whereas dissimilar sounds do not. These observations could provide a potential mechanism of stimulus generalization, which is one of the most common phenomena associated with post-traumatic stress disorder, on the level of neuronal populations. To investigate how the aforementioned changes in neuronal population activity are linked to changes in the underlying synaptic connectivity, we devised a circuit model of excitatory and inhibitory neurons. We studied this firing rate model to investigate the effect of gradual changes in the network’s connectivity on its activity. Apart from an input dominated uni-stable regime (one response per stimulus independent of the network) and a network dominated uni-stable regime (one response per network independent of the stimulus), we also find a multi-stable regime for strong recurrent connectivity and a high ratio of inhibition to excitation. In this regime the model reproduces properties of neural population activity in mouse auditory cortex, including sparse activity, a broad distribution of firing rates, and clustering of stimuli into a near discrete set of response modes. This clustering in the multi-stable regime means that, not only can identical stimuli evoke different responses, depending on the network’s initial condition, but different stimuli can also evoke the same response. Applying gradual drift to the network connectivity we find periods of stable responses, interrupted by abrupt transitions altering the stimulus response mapping. We study the mechanism underlying these transitions by analyzing changes in the fixed points of this network model, employing a method to numerically find all the fixed points of the system. We find that such abrupt transitions typically cannot be explained by the mere displacement of existing fixed points, but involve qualitative changes in the fixed point structure in the vicinity of the response trajectory. We conclude that gradual synaptic drift can lead to abrupt transitions in stimulus responses and that qualitative changes in the network’s fixed point topology underlie such transitions. In summary we find that cortical networks display ongoing representational drift under basal conditions that is biased towards a differential generalization during fear conditioning. A circuit model is able to reproduce key characteristics of auditory cortex, including a clustering of stimulus responses into a near discrete set of response modes. Implementing synaptic drift into this model leads to periods of stable responses interrupted by abrupt transitions towards new responses.