Brand extension management has become one of the most important topics in branding research in the 1990's. Studies in this field are base mainly on the newly emerging brand equity paradigm. The present paper reviews first the two conceptual frameworks of brand extension research: firm-based brand equity and customer-based brand equity. Second, it reviews empirical research on the subject from a managerial perspective, treating about research on the internal and environmental conditions influencing brand extension strategies, the process of brand extension evaluation by consumers as well as the outcomes of brand extension launch on the parent company. A critical analysis of the validity of the published empirical studies is then proposed. The paper ends with discussion of future methodological and substantive research directions in this relatively new field