A central question in neuroscience is how sensory stimuli are detected and processed by neural circuits in the brain to generate sensory perception and behavior. Our laboratory has recently developed new molecular genetic and viral approaches that allow us to target and manipulate defined neural cell types in the olfactory cortex of mice. Furthermore, we have identified, using in vivo two-photon microscopy, electrophysiological recordings and computational approaches, important principles of odor information coding in cortical neural networks. These recent advances open up new opportunities to explore how diverse neural cell types contribute to odor information coding in the cortex, and how this information is transmitted to downstream target areas involved in sensory integration, cognition, and motor control.