Abstract– Chondrule compositions suggest either ferroan precursors and evaporation, or magnesian precursors and condensation. Type I chondrule precursors include granoblastic olivine aggregates (planetary or nebular) and fine-grained (dustball) precursors. In carbonaceous chondrites, type I chondrule precursors were S-free, while type II chondrules have higher Fe/Mn than in ordinary chondrites. Many type II chondrules contain diverse forsteritic relicts, consistent with polymict dustball precursors. The relationship between finer and coarser grained type I chondrules in ordinary chondrites suggests more evaporation from more highly melted chondrules. Fe metal in type I, and Na and S in type II chondrules indicate high partial pressures in ambient gas, as they are rapidly evaporated at canonical conditions. The occurrence of metal, sulfide, or low-Ca pyroxene on chondrule rims suggests (re)condensation. In Semarkona type II chondrules, Na-rich olivine cores, Na-poor melt inclusions, and Na-rich mesostases suggest evaporation followed by recondensation. Type II chondrules have correlated FeO and MnO, consistent with condensation onto forsteritic precursors, but with different ratios in carbonaceous chondrites and ordinary chondrites, indicating different redox history. The high partial pressures of lithophile elements require large dense clouds, either clumps in the protoplanetary disk, impact plumes, or bow shocks around protoplanets. In ordinary chondrites, clusters of type I and type II chondrules indicate high number densities and their similar oxygen isotopic compositions suggest recycling together. In carbonaceous chondrites, the much less abundant type II chondrules were probably added late to batches of type I chondrules from different O isotopic reservoirs.