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Our nose can identify millions of individual odors and group mixtures of odors into specific percepts. An odor is recognized independently of its concentrations and other background odors. A lot is known about the initial step of information processing: odors are sensed by a large family of olfactory receptors. Each odor excites multiple receptors and each receptor is activated by multiple odors. Information about the external world is transmitted to the brain in a combinatorial fashion. How is this information processed by the brain? To understand the principles of olfactory processing we studied temporal structure of neuronal code and timing of animal olfactory behavior. We recorded activity of mitral/tufted cells, the first recipient of odor information after receptors in the olfactory bulb of an awake mouse. We found that in spite of general intuition that the processing of olfactory information is slow, the temporal representation of odors in the brain is temporally very precise. Is this observed temporal precision of the neuronal code relevant to further information processing? We proposed the model how such temporally precise code can be read by higher brain areas - olfactory cortices, and presented behavioral experiments demonstrating that such temporal resolution is accessible by animal at the perceptual level.