Glycine and GABA are the two main inhibitory neurotransmitters in the central nervous system (CNS). While GABA receptors in the hippocampus have been studied in great detail, the role of glycine receptors (GlyRs) in the hippocampus is less understood. Here we examine recent evidence suggesting that GlyRs are present and active throughout the hippocampus. Extracellular glycine levels are controlled through a combination of release and transport mechanisms, both of which, along with the GlyRs themselves, can be modulated by a number of factors. We discuss the role of GlyRs in suppressing excitation by decreasing postsynaptic membrane resistance in the hippocampus, as well as the contribution of GlyRs to both short- and long-term plasticity.