I will discuss recent progress in the understanding of how to model galaxy clustering. While recent analyses have focussed on the baryon acoustic oscillations as a probe of cosmology, galaxy redshift surveys contain a lot more information than the acoustic scale. In extracting this additional information three main issues need to be well understood: nonlinear evolution of matter fluctuations, galaxy bias and redshift-space distortions. I will present recent progress in modeling these three effects that pave the way to constraining cosmology and galaxy formation with increased precision.