The paper gives a comprehensive review of the state of penaeid culture research, its impact on commercial activity, and the major research efforts required to solve remaining problems. After providing a brief historical perspective and describing the dominant penaeid species under culture, the paper discusses the major components or phases of a production system: constitution of broodstock and maturation, larval and postlarval rearing, pregrowing in nursery systems, and grow-out. The extensive, semi-intensive and intensive grow-out systems are described including applied research on fertilization, water management, feeding, etc. needed to support these systems. Artificial diets (pellets, microcapsules) in relation to basic nutritional requirements and diseases (nutritional, environmental or caused by pathogens) in the larval rearing, grow-out and other production phases, and their respective research priorities are discussed. Lastly, the need for fundamental research in shrimp physiology, digestion, ecdysis, maturation, hormones, pheromones and genetics to complement applied research is highlighted.