Problem-solving, an important example of creative thinking, is discussed in Chapter 3. The chapter begins with example of real-world problem-solving that had enormous historical consequences: the rescue in 1941 of the British army from the beaches at Dunkirk. The chapter then examines details of problem-solving, using three already-familiar creative advances: the Dunkirk rescue, just discussed; and IDEO’s shopping cart and Picasso’s Guernica, from Chapter 1. Problem-solving is a core component of analytic thinking, so the chapter examines in detail what we mean when we talk about “analytic thinking.” That discussion provides a set of concepts to use when we examine problem-solving and creative thinking throughout the book. We then turn to an examination of laboratory research on problem-solving to provide a more formal description of the processes involved. Again, analogy is seen as critically important in creative thinking. Finally, we reconsider the mechanisms underlying “green” creativity during problem-solving – generating a possible solution and extending the old idea to the new situation. In this chapter, we consider the relevance of those mechanisms to other situations.