This report focuses on a few subjects where substantial progress has been achieved during the past three years. Several colleagues were asked to describe what they consider as the highlights in their field, and we are very grateful to them for their prompt and competent response. They covered the following topics: massive stars (A. Maeder), intermediate mass stars (P. Demarque), low mass objects (G. Chabrier), stellar convection (H. Spruit), atomic diffusion (G. Michaud), rotational mixing (J.-P. Zahn), helioseismology (S. Basu) and solar neutrinos (E. Schatzman). J.-P. Zahn was responsible for collecting and editing their contributions.