The parahippocampal cortex (PHC) in the primate brain is implicated in the medial temporal lobe (MTL) memory network for spatial and episodic memory, but the precise function of this region remains unclear. Importantly, the rodent postrhinal cortex (POR) provides a structural and connectional homolog to the primate PHC. This homology permits the use of the powerful tools available in rodent models to better understand the function of the PHC in the human and nonhuman primate brains. Although many articles have compared and dissociated the function of the rodent POR from other areas in the MTL implicated in learning, memory, and memory-guided behavior, there are no in-depth reviews, particularly covering the last two decades of research. Nor has there been a review of the literature on the potential role of the POR in attention. Here, we review the anatomical and functional connectivity of the POR in rats, examine the evidence for proposed behavioral functions of this region, and suggest a model that accounts for the array of observations. We propose that the rodent POR binds nonspatial information and spatial information to represent the current local physical environment or context, including the geometry of the space and the spatial layout of objects and features in the environment. The POR also automatically monitors the environment for changes and updates representations when changes occur. These representations of context are available to be used by multiple brain regions, including prefrontal, posterior cortical, and hippocampal areas, for context-guided behavior, associative learning, and episodic memory. (PsycInfo Database Record (c) 2022 APA, all rights reserved).