The diencephalon consists of the thalamus, hypothalamus, and epithalamus. The thalamus relays sensory and motor signals to the cerebral cortex and is critical for sensory processing. The hypothalamus regulates autonomic functions like temperature, hunger, and circadian rhythms. It also controls the pituitary gland and emotional responses. The epithalamus includes the pineal gland which regulates melatonin secretion and sleep cycles.