This volume contains the text of the five invited papers and16 selected contributions presented at the thirdInternational Workshop on Analogical and InductiveInference, AII `92, held in Dagstuhl Castle, Germany,October 5-9, 1992.Like the two previous events, AII '92 was intended to bringtogether representatives from several research communities,in particular, from theoretical computer science, artificialintelligence, and from cognitive sciences.The papers contained in this volume constitute astate-of-the-art report on formal approaches to algorithmiclearning, particularly emphasizing aspects of analogicalreasoning and inductive inference. Both these areas arecurrently attracting strong interest: analogical reasoningplays a crucial role in the booming field of case-basedreasoning, and, in the fieldof inductive logic programming,there have recently been developed a number of newtechniques for inductive inference.