The hippocampus and parahippocampal region are essential for representing episodic memories of spaces and objects, which are then used for adaptive behaviors. The traditional “dual-stream model”, which is based on anatomical characteristics of the medial temporal lobe, divides the parahippocampal region into two separate streams for spatial and nonspatial information. However, this model failed to account for recent experimental findings, suggesting a need for its revision. After a comprehensive review of the literature and our own findings, we introduced the Goal-directed Interaction of Stimulus and Task-demand (GIST) model, which highlights the importance of goal-directed behavioral responses in the activation of distinct streams in the parahippocampal region. According to the GIST model, the postrhinal and perirhinal cortices initially process visual scenes and objects with minimal influence of behavioral task demand. Once the scenes and objects are identified, the medial or lateral entorhinal cortex further processes this information based on navigational or non-navigational demands, respectively. This model ultimately suggests that the hippocampus is crucial to integrate complex sensory stimuli in naturalistic settings for both navigational and non-navigational purposes, creating a unified coherent map for adaptive behavior.