Computer developments and their applications in cognitive psychology are reviewed. Examples from recent studies illustrate the ways that computers are used for different research purposes: stimulus generation, on-line interactive experimental control, response collection, data analysis, and theory building. A quantitative analysis of federal funding for computer-based and noncomputer research compares costs over the past 9 years for the areas of perception, memory, learning, and thinking. A tabulation of journal articles relevant to computer-based cognitive research shows the distribution of articles over various categories of hardware and software development. Finally, the advantages and disadvantages of using computers in cognitive research are evaluated.