Real-world particulate emission measurements usually include a fresh nanoparticle mode called the nucleation mode. The formation of the nucleation mode during mixing, dilution, and cooling of diesel exhaust is discussed based on existing experimental and modeling data. The further evolution of the nucleation mode and the local dilution ratio within the vehicle exhaust is reviewed. The nucleation mode forms at low dilution ratios (Յ10) and is fully formed at the dilution ratio of approximately 100. The findings of the studies comparing real-world and dynamometer measurements are reviewed. A qualitative agreement of nucleation mode formation is generally observed. The geometric mean diameter of the nucleation mode, measured on-road, is well reproduced in the laboratory. However, the number concentration of the nucleation mode is too low in the laboratory (by a factor of 2-10). Nevertheless, the trends are reproduced, including those caused by differences in vehicle speed and engine load, engine and aftertreatment technology, as well as fuel and lubricant composition.