The thalamus is a large, dual lobed mass of gray matter buried under the cerebral cortex.

It is
involved in sensory perception and regulation of motor functions. The thalamus is a limbic system
structure and it connects areas of the cerebral cortex that are involved in sensory perception and
movement with other parts of the brain and spinal cord that also have a role in sensation and
movement. As a regulator of sensory information, the thalamus also controls sleep and awake states
of consciousness. The thalamus sends out signals in the brain to reduce the perception of and
response to sensory information, such as sound during sleep.

The thalamus is a vital structure lying deep within the brain that has several important functions.
There are extensive nerve networks that send signals all around the structures of the brain including
the cerebral cortex. The thalamus is involved in sensory and motor signal relay and the regulation of
consciousness and sleep. Aside from sense of smell, all other sensory processes involve a thalamic
nucleus receiving a sensory signal which is then directed to the relevant cortical area.The thalamus
plays a role in controlling the motor systems of the brain which are responsible for voluntary bodily
movement and coordination.The thalamus also plays roles in the following systems.
The visual system
The thalamus receives input from the retina which is relayed to the brain via the optic nerve. Signals
are sent to the lateral geniculate nucleus of the thalamus which then forwards them onto the primary
visual cortex (area V1) in the occipital lobe.
The thalamus not only relays the information but also processes it, as each of the primary sensory
relay areas receives information back from the cerebral cortex (called back projections).
The auditory or hearing system
The medial geniculate nucleus relays auditory information between the inferior colliculus of the
midbrain and the primary auditory cortex.

Touch
The ventral posterior nucleus relays information regarding touch and perception of bodily position to
the primary somatosensory cortex in the cerebral cortex.
Sleep and wakefulness
The thalamic nuclei are strongly and reciprocally linked with the cerebral cortex. This forms the
thalamo-cortico-thalamic circuits which are thought to regulate consciousness and the thalamus plays
a significant role in arousal, wakefulness and alertness. Damage to the thalamus is associated with
risk of coma.
Hypothalamus : hungry, thirst, temperature regulation,mood
Releasing of hormones : Growth hormone, Thyrotropin, ganadotropin, growth hormonse,
corticotrophin,sonatastatin,dopamine(Releases from Habenula),oxytocin,vasopressin.
EPithalamus : 1. Habenula- pain processing, productive behavior, nutrition, sleep wake
cycle(biological clock), strees
2. Medullaris- bundle fiber, surface of thalamus
3. Pineal gland - pine-cone shape, produce melatonin(sleep), cicadian rhythm and regulate
reproductive hormones.

Reference :
http://www.neuroanatomy.wisc.edu/coursebook/thalamus.pdf