A sophisticated approach to condensate opacity is required to properly model the atmospheres of L and T dwarfs. Here we review different models for the treatment of condensates in brown dwarf atmospheres. We conclude that models which include both particle sedimentation and upwards transport of condensate (both gas and particles) provide the best fit for the L dwarf colors. While a globally uniform cloud model fits the L dwarf data, it turns to the blue in J-K too slowly to fit the T dwarfs. Models which include local clearings in the global cloud deck, similar to Jupiters prominent five-micron hot spots, better reproduce the available photometric data and also account for the observed resurgence of FeH absorption in early type T dwarfs.