In the last three decades integrated circuit (IC) fabrication technology has evolved from integration of a few transistors in small-scale integration to integration of several million transistors in very large-scale integration (VLSI). This phenomenal progress has been made possible by automating the process of design and fabrication of VLSI chips. This chapter presents an overview of the fundamental concepts of VLSI physical design automation. Different design styles and the design cycle of a VLSI circuit are discussed. The chapter also discusses different steps of the physical design and each step of the physical design cycle. All the substeps of the physical design step are interrelated. Efficient and effective algorithms are required to solve different problems in each of the substeps. Despite significant research efforts in this field, the CAD tools still lag behind the technological advances in fabrication.