The improvement of grazing and drought tolerance of temperate (C3) perennial pasture grasses is an important component of plant improvement programmes. The improvement of these characteristics in grasses is best based on an understanding of the physiology of grass growth and development. This paper discusses the components of growth, i.e. buds, leaves, tillers, stems, and plants, how they interact, and how compensation between components occurs. These components are considered in relation to what is known about the grazing and drought tolerance of grasses in Australia where selection for plant survival is as important as for production. It is concluded that tiller and bud densities could be increased in new cultivars. Some existing cultivars have, arguably, too low a tiller density. Plants with more and, or larger tillers have more chances of survival in many circumstances. Reproductive development interacts strongly with grass growth and development. Once apices initiate, growth is stimulated, but the numbers of tillers can then decline and plants become more vulnerable to damage from grazing, especially during stem elongation. Early-flowering cultivars are more winter-active, but they are also likely to be more A94023