We discuss the connection between Matrix string theory and the DLCQ of
string theory. Using this connection we describe the sense in which p
erturbative string amplitudes are reproduced in the Matrix string theo
ry. Using recent realization of the connection between SYM and Supergr
avity, we suggest how to describe Matrix theory with non-flat backgrou
nds. (C) 1998 Elsevier Science B.V.