We study Dirac cohomology HDg,h(M) for modules belonging to category O of a finite dimensional complex semisimple Lie algebra. We start by studying the generalized infinitesimal character decomposition of M⊗S, with S being a spin module of h⊥. As a consequence, “Vogan’s conjecture” holds, and we prove a nonvanishing result for HDg,h(M) while we show that in the case of a Hermitian symmetric pair (g,k) and an irreducible unitary module M∈O, Dirac cohomology coincides with the nilpotent Lie algebra cohomology with coefficients in M. In the last part, we show that the higher Dirac cohomology and index introduced by Pandžić and Somberg satisfy nice homological properties for M∈O.