A tremendous wealth of data is accumulating on the variety and distribution of transposable elements (TEs) in natural populations. There is little doubt that TEs provide new genetic variation on a scale, and with a degree of sophistication, previously unimagined. There are many examples of mutations and other types of genetic variation associated with the activity of mobile elements. Mutant phenotypes range from subtle changes in tissue specificity to dramatic alterations in the development and organization of tissues and organs. Such changes can occur because of insertions in coding regions, but the more sophisticated TE-mediated changes are more often the result of insertions into 5 flanking regions and introns. Here, TE-induced variation is viewed from three evolutionary perspectives that are not mutually exclusive. First, variation resulting from the intrinsic parasitic nature of TE activity is examined. Second, we describe possible coadaptations between elements and their hosts that appear to have evolved because of selection to reduce the deleterious effects of new insertions on host fitness. Finally, some possible cases are explored in which the capacity of TEs to generate variation has been exploited by their hosts. The number of well documented cases in which element sequences appear to confer useful traits on the host, although small, is growing rapidly.The book whose publication we are celebrating in this colloquium indicates that Theodosius Dobzhansky had a very special interest in gene mutation and its causes. Dobzhansky recognized mutation as the ''raw material'' on which natural selection acts and as the first of three steps necessary for evolution to take place. However, the discovery of transposable elements (TEs) in the 1940s by Barbara McClintock occurred a decade later, and it was a further 30 years before the significance of her findings started to be fully appreciated. Sixty years ago, Dobzhansky was well aware of the mutagenic properties of ionizing radiation discovered in 1927 by H. J. Muller but acknowledged that much less than 1% of spontaneous mutations were attributable to this cause. He distinguished between spontaneous and induced mutations: ''The former are those which arise in strains not consciously exposed to known or suspected mutation-producing agents.'' He also pointed out that ''since the name spontaneous constitutes only a thinlyveiled [sic] admission of the ignorance of the phenomenon to which it is applied, the quest for the causes of mutation has always occupied the attention of geneticists.'' Although at that time no clues to its nature were yet available, Dobzhansky realized that a major piece of the mutation puzzle was still missing. We believe he would have been intrigued with the discoveries of TEs in natural populations that have taken place during the last 20 years and that he would have been an active participant in the continuing debate about their role in evolution.