<b>Theory of Magnetism</b> is an important subfield of the theory of solids, and has guided a long history of research into the phenomenon of magnetism. This book provides the foundation for further development in this field. Its contents are divided into four parts. In Part I, <i>Magnetic</i> <i>Ions in</i> <i>Crystals, </i> the electron states of magnetic ions in crystals and the exchange interactions between them are explained. Part II, <i>Magnetism of Spin Systems, </i> treats problems of ferromagnetism and antiferromagnetism shown by exchange-coupled localized spin systems. In Part III, <i>Magnetism of Metals, </i> magnetic properties of itinerant electron systems are discussed in relation to 3d electrons in iron-group metals. Part IV, <i> Magnetism of Dilute Alloys, </i> is devoted to an explanation of the Kondo effect and related topics.