The observation that young stars are clustered in few body non-hierarchical multiple systems at very young ages has profound consequences for our understanding of the formation of stars, binaries and the disks and planets that may surround them. In this chapter we review theoretical progress made over the last decade in modeling the break up of these natal clusters and discuss a range of observational predictions that arise from these models, relating to the kinematics, binary statistics and possession of disks of both stars and brown dwarfs. We also argue that one of the most spectacular manifestations of dynamical interactions in young multiple systems should be the formation of giant Herbig-Haro flows, and present observational evidence that may be interpreted in this light.