Modern control systems often involve interaction of a large number of sensors and actuators with dynamical systems, and it is important to design algorithms which ensure efficient operation of such complex systems. With this motivation, we aim to organize this workshop with ten invited talks addressing current research in the area of distributed estimation and optimization. From practical viewpoint, implementation of such algorithms on digital computers often involves interaction of continuous and discrete dynamics, which often results in mathematical models with hybrid dynamics. Therefore, we aim to cover research topics which lie at the intersection of distributed estimation, optimization and nonlinear/hybrid dynamical systems.