This book constitutes the refereed proceedings of the Third International Conference on Fuzzy Systems and Knowledge Discovery, FSKD 2006, held in Xi'an, China, in September 2006 as a joint event in federation with the Second International Conference on Natural Computation ICNC 2006 (LNCS volumes 4221, and 4222).

The 115 revised full papers and 50 revised short papers presented were carefully reviewed and rigorously selected from 1274 initial submissions. Specific areas covered are neural computation, quantum computation, evolutionary computation, DNA computation, fuzzy computation, granular computation, artificial life, etc., with innovative applications to knowledge discovery, finance, operations research, and more. The papers are organized in topical sections on fuzzy theory and algorithms, knowledge discovery theory and algorithms, fuzzy applications, and knowledge discovery applications.