The results of theoretical studies of the bulk and interface properties of nitrides are presented. As a test the bulk properties, including phonons of GaN at the Γ-point, are calculated and found to be in excellent agreement with the experimental data. At interfaces, the strain effects on the band offsets range from 20% to 40%, depending on the substrate. The AlN/GaN/InN interfaces are all of type I, while the Al0.5Ga0.5N on A1N zinc-blende (001) interface is of type II. Further, an interface similar to those used in the recent blue laser diodes is of type I and does not have any electronically active interface states. The valence band-offset in the (0001) GaN on A1N interface is -0.57 eV and the conduction band-offset is 1.87 eV.