A wide spectral coverage from near-infrared (NIR) to far-infrared (FIR) of AKARI both for imaging and spectroscopy enables us to eciently study the emission from gas and dust in the interstellar medium (ISM). In particular, the Infrared Camera (IRC) onboard AKARI oers a unique opportunity to carry out sensitive spectroscopy in the NIR (2{5 m) for the rst time from a spaceborn telescope. This spectral range contains a number of important dust bands and gas lines, such as the aromatic and aliphatic emission bands at 3.3 and 3.4{3.5 m, H2O and CO2 ices at 3.0 and 4.3 m, CO, H2, and HI gas emission lines. In this paper we concentrate on the aromatic and aliphatic emission and ice absorption features. The balance between dust supply and destruction suggests signicant dust processing taking place as well as dust formation in the ISM. Detailed analysis of the aromatic and aliphatic bands of AKARI observations for a number of Hii regions and Hii region-like objects suggests processing of carbonaceous dust in the ISM. The ice formation process can also be studied with IRC NIR spectroscopy eciently. In this review, dust processing in the ISM divulged by recent analysis of AKARI data is discussed.

ABSTRACT
1. INTRODUCTION
2. PROCESSING OF CARBONACEOUS DUST
3. SEARCH FOR EMISSION FEATURES FROMDEUTERATED PAHs
4. INTERSTELLAR ICES
5. SUMMARY
REFERENCES

• Masahiro Tanaka(Center for Computational Sciences, University of Tsukuba)
• Yoko Okada(I. Physikalisches Institut, Universitat zu Koln)
• Hidehiro Kaneda(Graduate School of Science, Nagoya University)
• Daisuke Ishihara(Graduate School of Science, Nagoya University)
• Takashi Shimonishi(Department of Earth and Planetary Sciences, Graduate School of Science, Kobe University)
• Mark Hammonds(Department of Astronomy, Graduate School of Science, The University of Tokyo)
• Aaron C. Bell(Department of Astronomy, Graduate School of Science, The University of Tokyo)
• Itsuki Sakon(Department of Astronomy, Graduate School of Science, The University of Tokyo)
• Ryou Ohsawa(Department of Astronomy, Graduate School of Science, The University of Tokyo/Institute of Astronomy, Graduate School of Science, The University of Tokyo)
• Tamami I. Mori(Department of Astronomy, Graduate School of Science, The University of Tokyo)
• Takashi Onaka(Department of Astronomy, Graduate School of Science, The University of Tokyo)