The talk contains brief review of two related topics. The first is the
last year progress in the instanton-based vacuum model, including (i)
properties of the glueballs, (ii) screening of the topological charge
and eta' physics. Those are done in the ''interacting instanton liqui
d model'', with the ''unquenched'' dynamical quarks. The second topic
is physics of chiral symmetry restoration, which is attributed to form
ation of polarized instanton-antiinstanton molecules. New Lagrangian d
escribing non-perturbative interaction at T > T-c, as well as calculat
ion of the spectrum of ''screening masses'' are presented.