The course aims to provide graduate students a solid foundation of thermodynamics and kinetics of materials. It emphasizes fundamental theory and quantitative analysis. The thermodynamics section includes classical laws of thermodynamics, their statistical perspectives, single and multi-component systems, thermodynamics of phase diagram, multiphase and reacting systems, and thermodynamic of defects. The kinetics section covers motion of point, line, and interface defects. The course will also introduce general features of phase transformation, nucleation and growth theory, and martensitic transformation. Upon successful completion of the course, students will be equipped with sufficient knowledge to analyse a wide range of processes during changes in material compositions, phases and microstructures.