This article overviews our recent studies of ultrahigh-Q and ultrasmall photonic-crystal cavities, and their applications to nonlinear optical processing and novel adiabatic control of light. First, we show our latest achievements of ultrahigh-Q photonic-crystal nanocavities, and present extreme slow-light demonstration. Next, we show all-optical bistable switching and memory operations based on enhanced optical nonlinearity in these nanocavities with extremely low power, and discuss their applicability for realizing chip-scale all-optical logic, such as flip-flop. Finally, we introduce adiabatic tuning of high-Q nanocavities, which leads to novel wavelength conversion and another type of optical memories.