Insect intraspecific olfactory communication occurs in a complex sensory environment. Here we present recent results on how the olfactory system extracts specific information from a sensory background, and integrates it with complementary information to improve odor source localization. Recent advances on mechanisms of olfactory mixture processing, multi-modal integration, as well as plasticity of sensory processing are reviewed. Significant progress in the understanding of neural coding and molecular bases of olfaction reinforce our perception of the tremendous adaptability of insects to a changing environment. However several reports demonstrate that anthropogenic environmental perturbations interfere with insect olfactory communication and might as a consequence significantly alter the functioning of ecosystems and agroecosystems.