Tilting theory has been a very important tool in the classification of finite dimensional algebras of finite and tame representation type, as well as, in many other branches of mathematics. Happel (1988) and Cline et al. (J Algebra 304:397–409 1986) proved that generalized tilting induces derived equivalences between module categories, and tilting complexes were used by Rickard (J Lond Math Soc 39:436–456, 1989) to develop a general Morita theory of derived categories. On the other hand, functor categories were introduced in representation theory by Auslander (I Commun Algebra 1(3):177–268, 1974), Auslander (1971) and used in his proof of the first Brauer–Thrall conjecture (Auslander 1978) and later on, used systematically in his joint work with I. Reiten on stable equivalence (Auslander and Reiten, Adv Math 12(3):306–366, 1974), Auslander and Reiten (1973) and many other applications. Recently, functor categories were used in Martínez-Villa and Solberg (J Algebra 323(5):1369–1407, 2010) to study the Auslander–Reiten components of finite dimensional algebras. The aim of this paper is to extend tilting theory to arbitrary functor categories, having in mind applications to the functor category Mod (modΛ), with Λ a finite dimensional algebra.