This thesis examines the properties of spatial (i.e., locational and directional) Ps within the minimalist framework (Chomsky 1995,1998,1999), which has put an ultimate emphasis on economy in terms of derivation and representation. The principal goals of this thesis are (i) to investigate how the syntax of such nature derives PPs in accordance with the properties of Ps and (ii) to show how the internal PP structure interacts with the external syntax of PP. Chomsky's minimalist framework assumes two syntactic operations, i.e.. Merge and Move, and two different types of outcome of the operations, depending on the properties of lexical items involved in each operation executed. One outcome results from a merger of two items, of which one selects the other. The other results from a merger of two items, neither of which selects the other. I propose that there are three heads involved in deriving a layered PP structure: functional p, lexical P and locative N. This analysis is shown to be empirically supported from languages such as Dutch, English, Hungarian, Japanese and K'ekchi. I also claim that there are also intransitive Ps that adjoin to either or pP. The internal structure of PP interacts with its external syntax. One apparent area of grammar that shows desirable consequences for the layered PP analysis is P-to-V incorporation. For instance, the incorporability versus the unincorporability of Ps in Dutch can be accounted for by the principle (i.e.. Minimal Link Condition) that forbids skipping over an intermediate head, thus supporting the layered structure of PP. Another area offering support is locative inversion: the presence versus the absence of locative N head in PP can account for a contrast observed in locative inversion facts. Provided that an EPP-feature of T is category-specific, a contrast between PPs that can undergo movement to [Spec, T] and those that cannot stems from their respective internal structures.