Data from 68 cow carcasses were used to develop a new yield grading system. First principal component (FPC) values for compositional attributes (LNFT = separable lean weight/[lean+fat weight] x 100, LNBN = separable lean weight/[lean+bone+connective tissue weights] x 100, and BTPR = [defatted lean from the round, loin, rib, and chuck]/side weight x 100) were determined. The first component explained 83.5% of the standardized variance and load values were .63, -.52, and .58, respectively. The resulting FPC values ranged from -1.93 to 1.89. The linear regression of LNFT, LNBN, and BTPR (dependent variables) on FPC (independent variable) explained a significant amount of variation (P less than .001) in each case and resulted in R2-values of .98, .67, and .85, respectively. A best-fit yield grade equation, developed to predict FPC, included adjusted fat thickness (ADF), percentage of kidney, pelvic, and heart fat (KPH), and overall muscling grade (OM). The equation, FPC = 2.04 - (.67 x ADF) - (.21 x KPH) - (.0016 x OM), explained a significant amount (P less than .001) of variation in FPC with R2 = .94 and residual standard deviation = .25. Simple correlations for ADF, KPH, and OM with FPC were -.87, -.71, and -.80, respectively. Cow carcasses were assigned to one of three grades based on FPC values that corresponded with predetermined levels of LNFT, LNBN, and BTPR. These grades generally had smaller CV than existing grades. When used in conjunction with quality grades, proposed grades could be more useful to the cow meat industry.