Nonlinear acoustic effects associated with collective dynamics of bubbles in a liquid are considered in this article. The mechanism of nonlinearity is caused by the variation of the bubble concentration in space due to bubble drift under the effect of radiation pressure and hydrodynamic (Bjerknes) forces (the latter may result in bubble coalescence). First, the individual behavior of a bubble or a pair of bubbles in an acoustic field is considered. Second, kinetic equations for the bubble distribution function in an acoustic field are derived, and, third, different effects of sound propagation are discussed. They include some steady-state and transient ‘‘envelope waves’’ propagating together with ‘‘concentration waves.’’ A simple model of ‘‘nonlinear transparency’’ in acoustics, which is in qualitative agreement with experimental results, is touched upon. A harmonic wave in a medium with homogeneous bubble distribution is shown to be unstable, and may possibly result in such effects as wave front conjugation, self-focusing of sound, and, probably, the formation of bubble groups.