  We summarize both the study of CP violation with $K$ and $B$ mesons, as well
as rare decays of kaons, emphasizing recent developments. The topics discussed
include the unitarity triangle, $\epsilon'/\epsilon$, $K\to\pi\nu\bar\nu$ and
other rare $K$ decays, T-odd asymmetries in kaon physics, theoretical aspects
of CP violation in B decays, $B\to J/\Psi K_S$, $B\to\pi\pi$, $B\to\pi K$ and
inclusive CP asymmetries.
