The subject of this talk was the review of our study of three ($2+1$) dimensional Quantum Chromodynamics. In our previous works, we showed the existence of a phase where parity is unbroken and the flavor group $U(2n)$ is broken to a subgroup $U(n)\times U(n)$. We derived the low energy effective action for the theory and showed that it has solitonic excitations with Fermi statistic, to be identified with the three dimensional ``baryon''. Finally, we studied the current algebra for this effective action and we found a co-homologically non trivial generalization of Kac-Moody algebras to three dimensions. ; Comment: 7 pages, Plain TEX, talk presented by S.G. Rajeev at the XXVI INTERNATIONAL CONFERENCE ON HIGH ENERGY PHYSICS, DALLAS TX AUG. 1992