The state of knowledge in several areas of music perception will be reviewed. Topics to be covered include principles of organization and grouping, tonal shape analyzing mechanisms, rhythm, and tempo, the role of memory, and the perception of instrumental timbre. The field as a whole is currently undergoing rapid expansion. This is due in large part to recent technological advances which have facilitated the generation of complex auditory stimuli with precisely controlled parameters. Given the developing interest among scientists, music theorists, who have traditionally been rationalistic in their approach, are also turning their attention to empirical issues. Thus, we see emerging a new and strong interaction between musical acoustics on the one hand and music theory on the other. It is expected that considerable advances will be made in the understanding of music perception over the next decade.