Objective: This review describes the relatively small body of neuropsychological and cognitive research conducted over the past 100 years focused on theoretical models explaining the neurocognitive processes that support everyday functioning and the breakdown of functional abilities in the face of neurological damage or disease. Method: The historical roots of the theories of everyday activities based on direct observation of behavior in neurology and diary reports of everyday errors in cognitive psychology are presented, followed by a review of the empirical findings and resulting theoretical conceptualizations from case studies and group studies of various clinical populations in neuropsychology. Results: We conclude with a new framework (the goal-control model) that integrates the most recent empirical findings in neuropsychology with mechanisms proposed by cognitive models. Conclusions: The goal-control model offers empirically supported solutions to understanding and predicting functioning in the real world. This new model generates testable predictions for future research and provides guidance for clinical assessment and interventions. Key Points Question: Neuropsychological theories of memory and language help us understand and predict specific cognitive problems people experience after brain damage or disease, but what is our current theoretical understanding of everyday activities that are important for people's day-to-day lives, like preparing a meal? Findings: The empirical data and theories pertaining to everyday activities described over the past century by behavioral neurologists and cognitive psychologists were integrated into a novel framework called the goal-control model. Importance: The goal-control model promotes understanding of functional difficulties, particularly for individuals with moderate-to-severe cognitive impairments, and offers testable hypotheses for future research and implications for neuropsychological assessment and intervention. Next Steps: Future studies are needed to extend the goal-control model for individuals with mild cognitive impairments and to evaluate the clinical assessments and interventions informed by the model.