The approach to thermal equilibrium, or thermalization, in isolated quantum systems is among the most fundamental problems in statistical physics. Recent theoretical studies have revealed that thermalization in isolated quantum systems has several remarkable features, which emerge from quantum entanglement and are quite distinct from those in classical systems. Experimentally, well isolated and highly controllable ultracold quantum gases offer an ideal system to study the nonequilibrium dynamics in isolated quantum systems, triggering intensive recent theoretical endeavors on this fundamental subject. Besides thermalization, many isolated quantum systems show intriguing behavior in relaxation processes, especially prethermalization. Prethermalization occurs when there is a clear separation in relevant time scales and has several different physical origins depending on individual systems. In this review, we overview theoretical approaches to the problems of thermalization and prethermalization.