Techniques have been developed to enable the modification of individual genes in animals and plants and thereby precisely alter inherited traits. These genetically altered animals and plants are called transgenic and are of enormous value in medicine and agriculture. An improved understanding of the basic processes governing germ cell and embryo development and of the biology of gametes (sperm and oocytes) and embryonic stem cells will enable us to improve reproductive efficiency, generate animal models of human and animal disease and help provide the knowledge base for regenerative medicine, as well as toward the treatment of infertility.