This paper provides a fundamental analysis of definition, functions, and instructional environments of Mindtools. Mindtools as cognitive tools represent an innovative application different from traditional conceptions of computer-based instruction. Mindtools function as knowledge construction tools and cognitive learning environment for developing and promoting thinking and creativity. Mindtools may include data base, spreadsheets, semantic network, expert systems, computer-mediated communication (CMC), hypermedia/multimedia, programming, and microword learning environment. Mindtools may foster collaborative, cooperative, and group learning among students.