Recent data obtained after peripheral olfactory system damage, when compared with bulbectomy data, suggest that the olfactory bulb has certain general modulatory functions, in addition to its specific sensory role as initial processor of olfactory information. It is proposed that the olfactory bulb is involved in a forebrain arousal mechanism comprised mainly of hypothalamus and limbic system. Behavioral and electrophysiological evidence is reviewed that supports the idea that the olfactory bulb may modulate the excitability of forebrain regions. Anatomical details of the system are considered, and its relationship to reinforcement mechanisms and to the Arousal System II of Routtenberg is outlined. 'Most studies aimed at elucidating the extent to which behavior is dependent on and guided by olfactory information have made use of the technique of olfactory bulbectomy to produce anosmia, or inability to smell. This approach rests on the assumption that the olfactory bulb is exclusively a sensory relay structure whose only action is to transmit neuronal activity from the olfactory receptors to higher olfactory centers. Adherence to this view, which is apparently widespread but often not stated explicitly, is evident in terminology that refers to the olfactory bulb as the "olfactory afferent" and bulbectomy as olfactory "deafferentation" (Aron, Roos, & Asch, 1970;Karli, Vergnes, & Didiergeorges, 1969;LaRue & LeMagnen, 1972), a misuse of the latter term, which properly refers to the interruption of primary sensory nerve fibers (Blakiston's Medical Dictionary, 1972). Complete bilateral bulbectomy destroys roughly 4% of central nervous tissue rostral to spinal cord in the rat.