The sense of smell, or olfaction, is the special sense through which smells (or odors) are perceived. The sense of smell has many functions, including detecting desirable foods, hazards, and pheromones, and plays a role in taste.

In humans, it occurs when an odor binds to a receptor within the nasal cavity, transmitting a signal through the olfactory system. Glomeruli aggregate signals from these receptors and transmit them to the olfactory bulb, where the sensory input will start to interact with parts of the brain responsible for smell identification, memory, and emotion.

There are many different things which can interfere with a normal sense of smell, including damage to the nose or smell receptors, anosmia, upper respiratory infections, traumatic brain injury, and neurodegenerative disease.

Early scientific study of the sense of smell includes the extensive doctoral dissertation of Eleanor Gamble, published in 1898, which compared olfactory to other stimulus modalities, and implied that smell had a lower intensity discrimination.

As the Epicurean and atomistic Roman philosopher Lucretius (1st century BCE) speculated, different odors are attributed to different shapes and sizes of "atoms" (odor molecules in the modern understanding) that stimulate the olfactory organ.

A modern demonstration of that theory was the cloning of olfactory receptor proteins by Linda B. Buck and Richard Axel (who were awarded the Nobel Prize in 2004), and subsequent pairing of odor molecules to specific receptor proteins. Each odor receptor molecule recognizes only a particular molecular feature or class of odor molecules. Mammals have about a thousand genes that code for odor reception. Of the genes that code for odor receptors, only a portion are functional. Humans have far fewer active odor receptor genes than other primates and other mammals. In mammals, each olfactory receptor neuron expresses only one functional odor receptor. Odor receptor nerve cells function like a key–lock system: if the airborne molecules of a certain chemical can fit into the lock, the nerve cell will respond.

There are, at present, a number of competing theories regarding the mechanism of odor coding and perception. According to the shape theory, each receptor detects a feature of the odor molecule. The weak-shape theory, known as the odotope theory, suggests that different receptors detect only small pieces of molecules, and these minimal inputs are combined to form a larger olfactory perception (similar to the way visual perception is built up of smaller, information-poor sensations, combined and refined to create a detailed overall perception).

According to a new study, researchers have found that a functional relationship exists between molecular volume of odorants and the olfactory neural response. An alternative theory, the vibration theory proposed by Luca Turin, posits that odor receptors detect the frequencies of vibrations of odor molecules in the infrared range by quantum tunnelling. However, the behavioral predictions of this theory have been called into question. There is no theory yet that explains olfactory perception completely.