Statistical mechanics of the discrete nonlinear Schrodinger equation is stu
died by means of analytical and numerical techniques. The lower bound of th
e Hamiltonian permits the construction of standard Gibbsian equilibrium mea
sures for positive temperatures. Beyond the line of T = infinity, we identi
fy a phase transition through a discontinuity in the partition function. Th
e phase transition is demonstrated to manifest itself in the creation of br
eatherlike localized excitations. Interrelation between the statistical mec
hanics and the nonlinear dynamics of the system is explored numerically in
both regimes.