Nutritional and therapeutic qualities of fermented dairy products are reviewed. Partial hydrolysis of milk constituents (proteins, fats, and lactose) in yogurt, cheese, and other cultured dary foods appears to contribute to their increased digestibility. Lactase and other constituent enzymes of various culturing organisms should contribute to assimilation of lactose by lactose intolerant individuals. Several lactic cultures synthesize certain B-vitamins in fermented dairy products. In contrast, directly acidified dairy products do not exhibit such enhancement in B-vitamins. The hypocholestremic effect of milk is enhanced by fermentation or inclusion of lactic cultures. Lactobacillus acidophilus, Lactobacillus bulgaricus and other lactic organisms produce antimicrobial agents and natural antibiotics. However, production of natural antibacterial substances by different strains of the same species vary widely. These metabolites in cultured dairy products may be responsible for increased shelf life of the foods by inhibiting a wide spectrum of food spoilage organisms. Also, consumption of cultured products containing such natural antibacterial substances may provide the consumer with protection against disease organisms. Unfermented milk containing a specific culture or strain may be consumed to invest organisms for projected beneficial effects.