The olfactory bulb employs lateral and feedback inhibitory pathways to distribute odor information across parallel assemblies of mitral and granule cells. The pathways involve dendritic action potentials that can interact with a variety of voltage-dependent conductances and synaptic transmission to produce complex and dynamic patterns of activity. Electrical coupling also helps to ensure proper coordination and synchronization of these patterns. These mechanisms provide numerous options for dynamic modulation and control of signaling in the olfactory bulb.