Three scientists namely Prof John O'Keefe, May-Britt Moser and Edvard Moser has been awarded the Nobel Prize for physiology or medicine for discovering the brain's "GPS system".
The trio discovered how the brain knew where they were and was able to navigate from one place to another, the BBC reported.
The findings may help explain why Alzheimer's disease patients could not recognize their surroundings.
The Nobel Assembly said that the discoveries had solved a problem that had occupied philosophers and scientists for centuries.
The Nobel committee said the combination of grid and place cells constituted a comprehensive positioning system, an inner GPS, in the brain.