Nucleation, the initial process in vapor condensation, crystal nucleation, melting, and boiling, is the localized emergence of a distinct thermodynamic phase at the nanoscale that macroscopically grows in size with the attachment of growth units. These phase changes are the result of atomistic events driven by thermal fluctuations. The occurrence of atomistic level events with the length scales on the order of 10-10 m and time scales of 10-13 S equivalent to the vibrational frequency of atoms makes the nucleation a very complicated phenomenon to study. Even though abundant literature is available about fundamental aspects of nucleation, the knowledge on these phenomena is far from complete. The classical pathway to nucleation which was once considered to have general applicability to all nucleating systems is gradually giving way to a nonclassical pathway which is now considered as a dominating mechanism in solution crystallization and other systems. In this review, an attempt is made to compare underlying physical principles involved in various nucleating systems and their theoretical treatment based on classical nucleation theory, and other important theories such as a density functional approach and diffuse interface theory. The limitations of classical theory, the gradual evolution of a nonclassical two-step pathway to nucleation, and the questions that have to be addressed in the future are discussed systematically. © 2016 American Chemical Society.