We extend the notion of anti-unification to cover equational theories and present a method based on regular tree grammars to compute a finite representation of E-generalization sets. We present a framework to combine Inductive Logic Programming and E-generalization that includes an extension of Plotkin's lgg theorem to the equational case. We demonstrate the potential power of E-generalization by three example applications: computation of suggestions for auxiliary lemmas in equational inductive proofs, computation of construction laws for given term sequences, and learning of screen editor command sequences.

49 pages, 16 figures, author address given in header is meanwhile outdated, full version of an article in the "Artificial Intelligence Journal", appeared as technical report in 2003. An open-source C implementation and some examples are found at the Ancillary files