Despite the significant research that has been invested in understanding molecular recognition in biological systems, accurate prediction of macroscopic properties based on microscopic interactions remains elusive, which makes it difficult to identify systematically tight binding inhibitors in computational drug design. In the past, most ligand design efforts have centered on descriptors derived mainly from structure, neglecting entropic effects that develop from receptor flexibility. The lack of explicit incorporation of receptor motion has meant that compensatory effects between enthalpy and entropy, which are essential for the accurate estimation of free energy, have also been neglected. In addition, cooperative effects, which develop from alteration in the motion of the receptor because of ligand binding, are not captured. These effects pose a challenge for the design of small molecules that allosterically modulate protein‐protein and protein‐small‐molecule interactions. Here, we describe macroscopic properties of receptor‐ligand interactions, which are followed by a discussion of how these properties are predicted with microscopic interactions. A discussion then ensues on some fundamental aspects of the molecular recognition process that have attracted renewed attention, such as conformational selection versus induced‐fit binding, entropy‐enthalpy compensation, and allostery.