The article presents Event Segmentation Theory (EST), which proposes that people perceive and segment continuous activity into discrete events based on perceptual prediction errors. According to EST, the perception of event boundaries arises from ongoing perceptual processing and regulates attention and memory. Perceptual systems continuously make predictions about what will happen next. When transient errors in predictions arise, an event boundary is perceived. The theory suggests that the perception of events depends on both sensory cues and knowledge structures that represent previously learned information about event parts and inferences about actors' goals and plans. Neurological and neurophysiological data suggest that representations of events may be implemented by structures in the lateral prefrontal cortex and that perceptual prediction error is calculated and evaluated by a processing pathway including the anterior cingulate cortex and subcortical neuromodulatory systems. The article discusses the concept of an event as a segment of time at a given location that is perceived by an observer to have a beginning and an end. It also describes the theory of event segmentation, which proposes that event segmentation arises from the perceptual processing stream. The theory suggests that event segmentation is a spontaneous concomitant of ongoing perception and does not require conscious attention. Event segmentation is a mechanism of cognitive control, and it plays a central role in regulating perception and cognition. The theory also suggests that event segmentation happens simultaneously on multiple timescales and incorporates information from multiple senses. The article reviews research on the cognitive and neural correlates of event segmentation, including perceptual measures of event segmentation, the consequences of event segmentation for long-term memory, and features that correlate with perceptual event segmentation. The findings suggest that event boundaries are used to structure memory encoding and that individuals who are good at segmenting events remember them better than those who are poor at segmenting. The theory also suggests that event segmentation is a core, domain-general mechanism of cognitive control. The article concludes that event segmentation is a fundamental aspect of perception, attention, and memory, and that it plays a crucial role in how people perceive and remember events.The article presents Event Segmentation Theory (EST), which proposes that people perceive and segment continuous activity into discrete events based on perceptual prediction errors. According to EST, the perception of event boundaries arises from ongoing perceptual processing and regulates attention and memory. Perceptual systems continuously make predictions about what will happen next. When transient errors in predictions arise, an event boundary is perceived. The theory suggests that the perception of events depends on both sensory cues and knowledge structures that represent previously learned information about event parts and inferences about actors' goals and plans. Neurological and neurophysiological data suggest that representations of events may be implemented by structures in the lateral prefrontal cortex and that perceptual prediction error is calculated and evaluated by a processing pathway including the anterior cingulate cortex and subcortical neuromodulatory systems. The article discusses the concept of an event as a segment of time at a given location that is perceived by an observer to have a beginning and an end. It also describes the theory of event segmentation, which proposes that event segmentation arises from the perceptual processing stream. The theory suggests that event segmentation is a spontaneous concomitant of ongoing perception and does not require conscious attention. Event segmentation is a mechanism of cognitive control, and it plays a central role in regulating perception and cognition. The theory also suggests that event segmentation happens simultaneously on multiple timescales and incorporates information from multiple senses. The article reviews research on the cognitive and neural correlates of event segmentation, including perceptual measures of event segmentation, the consequences of event segmentation for long-term memory, and features that correlate with perceptual event segmentation. The findings suggest that event boundaries are used to structure memory encoding and that individuals who are good at segmenting events remember them better than those who are poor at segmenting. The theory also suggests that event segmentation is a core, domain-general mechanism of cognitive control. The article concludes that event segmentation is a fundamental aspect of perception, attention, and memory, and that it plays a crucial role in how people perceive and remember events.