An endogenous electrical field effect, i.e., ephaptic transmission, occurs when an electric field associated with activity occurring in one neuron polarizes the membrane of another neuron. It is well established that field effects occur during pathological conditions, such as epilepsy, but less clear if they play a functional role in the healthy brain. Here, we describe the principles of field effect interactions, discuss identified field effects in diverse brain structures from the teleost Mauthner cell to the mammalian cortex, and speculate on the function of these interactions. Recent evidence supports that relatively weak endogenous and exogenous field effects in laminar structures reach significance because they are amplified by network interactions. Such interactions may be important in rhythmogenesis for the cortical slow wave and hippocampal sharp wave-ripple, and also during transcranial stimulation.