Humans have amazing intellectual capabilities. We can create novel solutions for a number of different and complex problems. Our ability to solve problems on the spot gives us a greater flexibility that would not be possible if we could only imitate solutions that we had seen before. Unlike computers, we do not rely on complex calculations to project an infinite number of "what if" situations. Rather, we have a repertoire of strategies, from which we choose what we think is the best way to approach a particular problem. If we are experts in a particular area, we have a number of more effective strategies at our fingertips as a result of our increased knowledge and practice with related problems. How do we know what we know about problem solving? Mostly, we use a large number of shortcuts and educated guessing techniques that result in right answers most of the time, but can also cause mistakes if our assumptions are violated. We make many assumptions about a problem at the start, about what tools we have to solve the problem and about the rules of the problem itself. Those assumptions help structure our thoughts, but too much structure can limit our creativity and make solving novel problems more difficult. We will examine the processes involved in problem solving, including the strategies and shortcuts that make humans so effective.