Over the past century our picture of diffuse material in space has grown from a simple model of isolated clouds in thermal equilibrium with stellar radiation fields to one of a richly varied composite of materials with a wide range of physical properties and morphologies. The Solar System interacts with a dynamical interstellar medium. Optical, radio, and UV astronomy allow us to study the clouds which form the galactic environment of the Sun. The composition and distribution of interstellar clouds in the disk and halo tell us about the history of elemental formation in our galaxy, and the past and future environment of the Solar System.Dark lanes of dusty clouds obscuring portions of the Milky Way are celestial landmarks, but the realization that interstellar gas pervades space is quite recent. The twentieth century opened with the discovery of a "nebulous mass" of interstellar gas in the sightline towards the binary star 8 Orionis (Hartmann 1904). A series of over 40 spectra showed that the Ca II Kline (3933 A) absorption was nearly stationary in wavelength, "extraordinarily weak," and "almost perfectly sharp," in contrast to broader variable stellar absorption features. Sharp stationary Na I Dl and D2 lines (5890, 5896 A) were discovered in 8 Ori and f3Sco by Mary Lea Heger. An explanation offered was that a stationary absorbing cloud of vapor was present in space between these binary systems and the observer. The Ca II and Na I lines constituted the primary tracer for interstellar gas during the first half of the century.Interstellar matter (excluding dark matter) provides about 30-40% of the galactic mass density in the solar neighborhood. Trace elements heavier than He, which form the planets, record the chemical evolution of matter in our Galaxy, and provide detailed information on physical conditions in interstellar clouds, represent a small proportion of the interstellar atoms ( ~0.15%). These same elements trace