Thymic development proceeds through several defined stages that generate not only alpha beta and gamma delta T cells but can produce dendritic cells and B cells. The earliest thymocytes exist in the CD4(-)CD8(-) double negative compartment within a heterogeneous fraction termed DN1. Recent progress has identified several candidate populations that may be the bone fide T-cell progenitor population. The potential roles of these populations, which include hematopoietic stem cells, early lymphocyte precursors, common lymphoid progenitors, and early T lineage progenitors are being elucidated. The alpha beta T-cell lineage consists of distinct subsets, one of which is NKT cells. The developmental relationship of NKT cells to conventional T cells has been controversial. Recent work has shown that these cells are probably derived from CD4(+)CD8(+) thymocytes. The discovery and application of CD1d tetramers has made it possible to more fully describe NKT-cell development.