Genetic screens in Drosophila have identified many genes involved in neural development and function. However, until recently, it has been impossible to monitor neural signals in Drosophila central neurons, and it has been difficult to make specific perturbations to central neural circuits. This has changed in the past few years with the development of new tools for measuring and manipulating neural activity in the fly. Here we review how these new tools enable novel conceptual approaches to 'cracking circuits' in this important model organism. We discuss recent studies aimed at defining the cognitive demands on the fly brain, identifying the cellular components of specific neural circuits, mapping functional connectivity in those circuits and defining causal relationships between neural activity and behavior.