Proper management of multidimensional aggregates is a fundamental prerequisite for efficient OLAP. The experimental OLAP server CUBESTAR whose concepts are described, was designed exactly for that purpose. All logical query processing is based solely on a specific algebra for multidimensional data. However, a relational database system is used for the physical storage of the data. Therefore, in popular terms, CUBESTAR can be classified as a ROLAP system. In comparison to commercially available systems, CUBESTAR is superior in two aspects. First, the implemented multidimensional data model allows more adequate modeling of hierarchical dimensions, because properties which apply only to certain dimensional elements can be modeled context-sensitively. This fact is reflected by an extended star schema on the relational side. Second, CUBESTAR supports multidimensional query optimization by caching multidimensional aggregates. Since summary tables are not created in advance but as needed, hot spots can be adequately represented. The dynamic and partition-oriented caching method allows cost reductions of up to 60% with space requirements of less than 10% of the size of the fact table.