A number of theoretical and simulation results on star and structure formation in galaxy interactions and mergers is reviewed, and recent hydrodynamic simulations are presented. The role of gravity torques and ISM turbulence in galaxy interactions, in addition to the tidal field, is highlighted. Interactions can drive gas inflows towards the central kpc and trigger a central starburst, the intensity and statistical properties of which are discussed. A kinematically decoupled core and a supermassive central black hole can be fueled. Outside of the central kpc, many structures can form inside tidal tails, collisional ring, bridges, including super star clusters and tidal dwarf galaxies. The formation of super star clusters in galaxy mergers can now be directly resolved in hydrodynamic simulations. Their formation mechanisms and long-term evolution are reviewed, and the connection with present-day early-type galaxies is discussed.