“Where is that sound coming from?” is an important question for the auditory system. Most sounds originate from a particular place because the source of most sounds is a vibrating object with a limited spatial extent. This chapter describes how the auditory system localizes sounds, including how neural signals from the two ears are combined and processed. The chapter explains how the system deals with the problems of sound reflection in which the direction of a sound waveform does not correspond to the location of the original source. We also consider how sound reproduction can be made more realistic by incorporating spatial cues.>