In theoretical physics, functional renormalization group (FRG) is an implementation of the renormalization group (RG) concept which is used in quantum and statistical field theory, especially when dealing with strongly interacting systems. The method combines functional methods of quantum field theory with the intuitive renormalization group idea of Kenneth G. Wilson. This technique allows to interpolate smoothly between the known microscopic laws and the complicated macroscopic phenomena in physical systems. In this sense, it bridges the transition from simplicity of microphysics to complexity of macrophysics. Figuratively speaking, FRG acts as a microscope with a variable resolution. One starts with a high-resolution picture of the known microphysical laws and subsequently decreases the resolution to obtain a coarse-grained picture of macroscopic collective phenomena. The method is nonperturbative, meaning that it does not rely on an expansion in a small coupling constant. Mathematically, FRG is based on an exact functional differential equation for a scale-dependent effective action.