This volume contains the proceedings of the international workshop on the 'Evolution of Interstellar Matter and Dynamics of Galaxies' held at the Center for Theoretical Study in Prague in May 1991. All of the invited lectures are included, covering a broad area embracing star formation inside molecular clouds, HI supershells in interstellar space, and the dynamical evolution of the interstellar medium in galaxies. Contributed and poster papers are also included.