The gray matter predominantly occupied in the diencephalon is the thalamus.
It aids in the creation of sensations, and its neurons carry impulses from the body's sensory organs to the cerebral cortex.
It connects feelings and sensations.
It contributes to the arousal or alerting mechanism.
It contains important nuclei such the lateral geniculate, which is involved in vision, and the medial geniculate, which is involved in the auditory sense.