We review recent progress in the theory of neutron stars and compare its pr
edictions with the observational data on masses, radii, and temperatures. T
he theory of neutron stars made up of neutrons, protons, and leptons is dis
cussed in detail along with recent models of nuclear forces and modern many
-body techniques. The possibilities of pion and kaon condensation in dense
neutron star matter are considered, as is the possible occurrence of strang
e hyperons and quark-matter drops in the stellar core. The structure of mix
ed-phase matter in neutron stars, as well as the probable effect of phase t
ransitions on the spin down of pulsars, is also discussed.