Even though functional brain connectivity is an influential concept in modern cognitive neuroscience, it is a very controversial notion. This is why further theoretical and methodological clarification are needed to help define precisely what is meant by functional connectivity and to help frame-associated issues. In this review we present the neurophysiological concept of functional connectivity, which utilizes in a plausible manner the notion of neural assemblies, as well as local and large-scale levels of description. Here functional connectivity is the mechanism for the coordination of activity between different neural assemblies in order to achieve a complex cognitive task or perceptual process. Our theoretical and empirical findings offer new insights into possible implications of the concept of functional connectivity for cognitive neuroscience.