The transition state theory (TST), which is also known as theory of absolute reaction rates (ART) and the theory of activated state (complex), is essentially a refined version of crude collision theory, which treats the reacting molecules as the rigid spheres without any internal degree of freedom. The theory explains the rate of chemical reaction assuming a special type of chemical equilibrium (quasi-equilibrium) between the reactants and activated state (transition state complex). This special molecule decomposes to form the products of reaction. The rate of this reaction is then equal to the rate of decomposition of activated complex. This chapter also explains the limitation of TST theory and deals with the kinetics isotope effect.