A multifunctional wireless system is one that can receive and demodulate any electromagnetic signal from any direction, return a modulated signal in any specific direction, be reconfigurable to implement a variety of radio and sensor functions, and adapt to its local (ambient) environment to improve signal reception, reject interference, and compensate for multipath effects. This paper will present an overview of some programs pursuing development of the technology required to realize multifunctional wireless systems, discuss the advantages and challenges presented by these systems, and offer new concepts in components and system architectures that will enable the advantages and address the challenges.