The Y2K problem was the single most expensive and baffling challenge to society and corporate management the world has faced in many decades. Notwithstanding dire predictions, fear of the malfunctioning of power systems, water supply systems, telecommunications systems, air traffic control systems, etc. did not materialize. The smooth transition to the new millennium led some people to claim that Y2K was a hoax in order to line the pockets of executives of computer and management consulting firms. In an effort to explain the Y2K-related disruptions, and how potential disasters were averted, this paper addresses the overall impact of Y2K, including the leap-year rollover problem, the hazards of Y2K, as well as the massive costs spent on preventing potential failures. In addition, seven causal factors of the Y2K problem are analyzed. Finally, three categories of lessons learned from Y2K are discussed: the management of information technology, the social responsibility of computer professionals, and a global threat warrants global cooperation.