There has been rapid progress in inertial fusion in the past few years. This progress spans the construction of ignition facilities, a wide range of target concepts and the pursuit of integrated programmes to develop fusion energy using lasers, ion beams and z-pinches.Two ignition facilities are under construction, the national ignition facility (NIF) in the United States and the laser megajoule (LMJ) in France, and both projects are progressing towards an initial experimental capability. The laser integration line prototype beamline for LMJ and the first four beams of NIF will be available for experiments in 2003. The full 192 beam capability of NIF will be available in 2009 and ignition experiments are expected to begin shortly after that time.There is steady progress in target science and target fabrication in preparation for indirect-drive ignition experiments on NIF. Advanced target designs may lead to 5–10 times more yield than initial target designs. There has also been excellent progress on the science of ion beam and z-pinch-driven indirect-drive targets.Excellent progress on direct-drive targets has been obtained on the Omega laser at the University of Rochester. This includes improved performance of targets with a pulse shape predicted to result in reduced hydrodynamic instability. Rochester has also obtained encouraging results from initial cryogenic implosions.There is widespread interest in the science of fast ignition because of its potential for achieving higher target gain with lower driver energy and relaxed target fabrication requirements. Researchers from Osaka have achieved outstanding implosion and heating results from the Gekko XII Petawatt facility and implosions suitable for fast ignition have been tested on the Omega laser.A broad-based programme to develop lasers and ion beams for inertial fusion energy (IFE) is under way with excellent progress in drivers, chambers, target fabrication and target injection. KrF and diode pumped solid-state lasers are being developed in conjunction with dry-wall chambers and direct-drive targets. Induction accelerators for heavy ions are being developed in conjunction with thick-liquid protected wall chambers and indirect-drive targets.