The dynamics of sleep and wake are strongly linked to the circadian clock. Many models have accurately predicted behaviour resulting from dynamic interactions between these two systems without specifying physiological substrates for these interactions. By contrast, recent experimental work has identified much of the relevant physiology for circadian and sleep-wake regulation, but interaction dynamics are difficult to study experimentally. To bridge these approaches, we developed a neuronal population model for the dynamic, bidirectional, neurotransmitter-mediated interactions of the sleep-wake and circadian regulatory systems in nocturnal rats. This model proposes that the central circadian pacemaker, located within the suprachiasmatic nucleus (SCN) of the hypothalamus, promotes sleep through single neurotransmitter-mediated signalling to sleep-wake regulatory populations. Feedback projections from these populations to the SCN alter SCN firing patterns and fine-tune this modulation. Although this model reproduced circadian variation in sleep-wake dynamics in nocturnal rats, it failed to describe the sleep-wake dynamics observed in SCN-lesioned rats. We thus propose two alternative, physiologically based models in which neurotransmitter- and neuropeptide-mediated signalling from the SCN to sleep-wake populations introduces mechanisms to account for the behaviour of both the intact and SCN-lesioned rat. These models generate testable predictions and offer a new framework for modelling sleep-wake and circadian interactions.