The glomerular layer receives direct input from olfactory nerves, made up of the axons from approximately ten million olfactory receptor neurons in the olfactory mucosa, a region of the nasal cavity. The ends of the axons cluster in spherical structures known as glomeruli such that each glomerulus receives input primarily from olfactory receptor neurons that express the same olfactory receptor. Glomeruli are also permeated by dendrites from neurons called mitral cells, which in turn output to the olfactory cortex. Numerous interneuron types exist in the olfactory bulb including periglomerular cells which synapse within and between glomeruli, and granule cells which synapse with mitral cells.
The olfactory bulb transmits smell information from the nose to the brain, and is thus necessary for a proper sense of smell. As a neural circuit, the olfactory bulb has one source of sensory input (axons from olfactory receptor neurons of the olfactory epithelium), and one output (mitral cell axons). As a result, it is generally assumed that it functions as a filter, as opposed to an associative circuit that has many inputs and many outputs. However, the olfactory bulb also receives "top-down" information from such brain areas as the amygdala, neocortex, hippocampus, locus coeruleus, and substantia nigra. With this in mind, its potential functions can be placed into four non-exclusive categories:
While all of these functions could theoretically arise from the olfactory bulb's circuit layout, it is unclear which, if any, of these functions are performed exclusively by the olfactory bulb. By analogy to similar parts of the brain such as the retina, many researchers have focused on how the olfactory bulb filters incoming information from receptor neurons in space, or how it filters incoming information in time. At the core of these proposed filters are the two classes of interneurons; the periglomerular cells, and the granule cells.
Mitral cells are connected by interneurons known as granule cells, which by some theories produce lateral inhibition between mitral cells. It is not clear what the functional role of lateral inhibition would be, though it may be involved in boosting the signal-to-noise ratio of odor signals by silencing the basal firing rate of surrounding non-activated neurons. The synapse between mitral and granule cells is of a rare class of synapses that are "dendro-dendritic" which means that both sides of the synapse are dendrites that release neurotransmitter. In this specific case, mitral cells release the excitatory neurotransmitter glutamate, and granule cells release the inhibitory neurotransmitter Gamma-aminobutyric acid (GABA). As a result of its bi-directionality, the dendro-dendritic synapse can cause mitral cells to inhibit themselves (auto-inhibition), as well as neighboring mitral cells (lateral inhibition).
Olfaction is distinct from the other sensory systems where peripheral sensory receptors have a relay in the diencephalon. Therefore the olfactory bulb plays this role for the olfactory system.