The coupling of energy from a light field to the material is the fundamental step of any laser-processing technology, and the subsequent relaxation determines the material response and hence the character of the processing. In this chapter, a basic introduction to the physics of light-matter interaction is provided. The coupling, as well as the relaxation, depend strongly on the material type. For metals, the absorption is mainly linear and the material response can mostly be described by advanced thermal models (e.g., the two-temperature model). For band-gap materials, excited by photons with energy below the band gap, the absorption is typically seeded by a nonlinear creation of electron-hole pairs (e. g., through multi-photon absorption), followed by collisional-impact (avalanche) excitation. This dynamic, in combination with the propagation of the light, can, e.g., be treated in a multiple-rate-equation model. The materialdependent response is critical for applications in micro-and nano engineering, where highly localized interactions are normally desirable. For instance, ultrashort-pulse lasers are typically required for the formation of small structures in materials with high heat conductivities.