Thermal models are commonly used to interpret heavy-ion data on particle yi
elds and spectra and to extract the conditions of chemical and thermal free
ze-out in heavy-ion collisions. I discuss the usefulness and limitations of
such thermal model analyses and review the experimental and theoretical ev
idence for thermalization in nuclear collisions. The crucial role of correl
ating strangeness production data with single particle spectra and two-part
icle correlation measurements is pointed out. A consistent dynamical pictur
e for the heavy-ion data from the CERN SPS involves an initial prehadronic
stage with deconfined colour and with an appreciable isotropic pressure com
ponent. This requires an early onset of thermalization.