In this paper we review the theory of silicon nanowires. We focus on nanowires with diameters below 10 nm, where quantum effects become important and the properties diverge significantly from those of bulk silicon. These wires can be efficiently treated within electronic structure simulation methods and will be among the most important functional blocks of future nanoelectronic devices. Firstly, we review the structural properties of silicon nanowires, emphasizing the close connection between the growth orientation, the cross-section and the bounding facets. Secondly, we discuss the electronic structure of pristine and doped nanowires, which hold the ultimate key for their applicability in novel electronic devices. Finally, we review transport properties where some of the most important limitations in the performances of nanowire-based devices can lay. Many of the unique properties of these systems are at the same time defying challenges and opportunities for great technological advances.