Substantial increases of 3,500 kg of milk, 130 kg of fat, and 100 kg of protein per cow per lactation have resulted from improvements in genetics, nutrition, and management during the past 20 yr. At the same time, the interval from calving to conception increased (unfavorable) by 24 d. Genetics has accounted for about 55% of gains in the yield traits and about one-third of the change in interval to conception. Genetic gains in the yield traits and productive life have accumulated to around 1.7 and 1.2 genetic standard deviations since 1980. Unfavorable genetic changes in conception interval since 1980 and somatic cell score since 1990 have accumulated to 1.0 and 0.12 genetic standard deviations. The most important advance in selection indexes has been the introduction of nonyield traits. Advances in selection indexes have gone hand in hand with advances in data collection and genetic evaluation. As new traits were recorded in dairy management databases and as genetic evaluations were developed for these traits, they were incorporated into selection indexes. Until 1994, when somatic cell score and productive life were introduced, selection indexes provided by USDA included only yield traits. In 2000, composite type indexes for udder, feet and legs, and body size were added. Daughter pregnancy rate and service sire- and daughter-calving ease were included in 2003. The lifetime merit indexes introduced in 2003 have, for the first time, resulted in theoretical selection responses in the desired direction for all traits. During this time, the percentage relative economic weights in selection indexes increased from 0 to 45% for the nonyield traits. Selection emphasis on nonyield traits should continue to increase as additional traits (e.g., calf survival, metabolic disease, and male fertility) are introduced in the future. Wide variation exists among countries in traits included in selection indexes and in relative economic weights. Molecular genetic studies have identified many chromosome regions with potentially important major genes for economic traits. Use of DNA markers for genetic improvement is currently limited by lack of precision in marker location. Discovery of major genes will be accelerated by the availability of the bovine genome sequence, comparative genome maps and genome sequences across species, and increased use of breed crosses in molecular studies. As major genes are identified, their effects will be incorporated into genetic evaluations and selection indexes.