The research within the Division of Materials and Surface Theory (MST) covers parts of condensed-matter theory and computational physics, with foci on materials physics, surfaces physics, and computer simulations. The work in the division is characterized by a strong interplay between fundamental and applied research. It involves both methodological developments and applications to real systems. The division is taking part in the paradigm shift to a quantitative theory of materials that density-functionals, effective algorithms and high-performing computers imply. The division has a strong tradition of close collaboration with experimentalist, both locally and internationally. The activity covers basics to applications and patents.