The ability to manipulate the genome of the whole animal has, for the past 10 years, provided researchers with an alternative route of inquiry into many complex biological processes. Transgenic animals have numerous applications, encompassing a wide range of different disciplines, but they have proved especially useful in the investigation of gene regulation and gene function within the context of the living animal. This review describes the different techniques which have been used to produce transgenic animals and highlights advances which have been achieved using the transgenic approach.