The nanoscience institute comprises facilities to synthesize and characterize nanomaterials. Key elements are a pulsed-laser deposition system, a magnetic atomic force microscope, an x-ray emission spectrometer for a scanning transmission electron microscope, an x-ray microdiffraction system, high sensitiviy thermogravimetric system, an electron lithography system, and a shared (NIU/ANL) focused ion beam lithography system. A great need for understanding behavior at the nanoscale is a theoretical base and an extensive effort has been established in this area.