This workshop is the third of its kind, the first one having been organised at ECAI?96 in Budapest, and the second one at IJCAI?97 in Nagoya. The first workshop was successful in bringing people from different disciplines together, and in identifying some of the main general issues. The second workshop approached the issue of integrating abduction and induction from a more practical AI perspective. The main conclusion to be drawn from these two workshops is that whether one perceives abduction and induction as two of a kind or as fundamentally different reasoning forms depends strongly on the domain of application and the particular AI approach employed. Hence, an appropriate question to ask is not "What is the relation between abduction and induction", but rather "What are good reasons for perceiving them as fundamentally different or fundamentally similar?"