This article describes computer simulation of the dynamics of a distributed model of the olfactory system that is aimed at understanding the role of chaos in biological pattern recognition. The model is governed by coupled nonlinear differential equations with many variables and parameters, which allow multiple high-dimensional chaotic states. An appropriate set of the parameters is identified by computer experiments with the guidance of biological measurements, through which this model of the olfactory system maintains a low dimensional global chaotic attractor with multiple "wings." The central part of the attractor is its basal chaotic activity, which simulates the electroencephalographic (EEG) activity of the olfactory system under zero signal input (exhalation). It provides the system with a ready state so that it is unnecessary for the system to "wake up" from or return to a "dormant" equilibrium state every time that an input is given (by inhalation). Each of the wings may be either a near-limit cycle (a narrow band chaos) or a broad band chaos. The reproducible spatial pattern of each near-limit cycle is determined by a template made in the system. A novel input with no template activates the system to either a nonreproducible near-limit cycle wing or a broad band chaotic wing. Pattern recognition in the system may be considered as the transition from one wing to another, as demonstrated by the computer simulation. The time series of the manifestations of the attractor are EEG-like waveforms with fractal dimensions that reflect which wing the system is placed in by input or lack of input. The computer simulation also shows that the adaptive behavior of the system is scaling invariant, and it is independent of the initial conditions at the transition from one wing to another. These properties enable the system to classify an uninterrupted sequence of stimuli. © 1990.