Theoretical studies are reviewed for bulk nanobubbles (ultrafine bubbles (UFBs)), which are gas bubbles smaller than 1 μm in diameter. The dynamic equilibrium model is discussed as a promising model for the stability of a UFB against dissolution; more than half of the surface of a UFB should be covered with hydrophobic material (impurity). OH radicals are produced during hydrodynamic or acoustic cavitation to produce UFBs. After stopping cavitation, OH radicals are generated through chemical reactions of H2O2 and O3 in the liquid water. The possibility of radical generation during the bubble dissolution is also discussed based on numerical simulations. UFBs are concentrated on the liquid surface according to the dynamic equilibrium model. As a result, rupture of liquid film is accelerated by the presence of UFBs, which results in a reduction in “surface tension”, measured by the du Noüy ring method. Finally, the interaction of UFBs with a solid surface is discussed.