Chemical and physical processes in the outer solar nebula are reviewed. It is argued that the outer nebula was a chemically active environment with UV photochemistry and ion-molecule chemistry in its low density regions and grain-catalyzed chemistry in Jovian protoplanetary subnebulae. Presolar material was altered to greater or lesser extent by these spatially and temporally variable processes, which mimic many features of interstellar chemistry. Experiments, models, and observations are recommended to address the questions of presolar versus nebular dominance in the outer solar nebula and of how to distinguish interstellar and nebular sources of cometary volatiles.