There are now over a dozen low-CTE materials with thermal conductivities between that of copper (400 w/m-K) and over 4X copper (1700 W/m-K). Most have low densities. For comparison, traditional low-CTE packaging materials like copper/tungsten have thermal conductivities that are little or no better than that of aluminum (200 W/m-K) and high densities. There are also low-density thermal insulators with low CTEs. Some advanced materials are low cost. Most do not outgas. They have a wide range of electrical properties that can be used to minimize electromagnetic emissions or provide EMI shielding. Several are now in commercial and aerospace applications, including laser diode packages; light-emitting diode (LED) packages; thermoelectric cooler bases, plasma displays; power modules; servers; laptops; heat sinks; thermally conductive, low-CTE printed circuit boards; and printed circuit board cold plates. Advanced material payoffs include: improved thermal performance, reliability, alignment and manufacturing yield; reduced thermal stresses and heating power requirements; simplified thermal design; enablement of hard solder direct attach; weight savings up to 85%; size reductions up to 65%; and lower cost. This paper discusses the large and increasing number of advanced packaging materials, including properties, development status, applications, increasing manufacturing yield, cost, lessons learned and future directions, including nanocomposites.