This monograph in two volumes contains a comprehensive and state-of-the art study of the basic concepts and principles of variational analysis and generalized differentiation in both finite-dimensional and infinite-dimensional spaces and presents numerous applications to problems in optimization, equilibria, stability and sensitivity, control theory, economics, mechanics, etc. The first volume is mainly devoted to the basic theory of variational analysis and generalized differentiations, while the second volume describes various applications. Both volumes include abundant bibliographies and extensive commentaries.