South Africa celebrated ten years of democracy in 2004. This special issue of "Social Indicators Research" ("SIR") reviews developments that have impacted on the quality of life of ordinary South Africans during the transition period. The issue updates an earlier volume of "SIR" (Volume 41) published in 1997 and as a stand-alone volume. The earlier volume was initiated following "SIR" editor Alex Michalos' first visit to South Africa. This update on quality of life in South Africa follows on his return visit to the country in 2004 to see firsthand the changes that had occurred in the meantime. This introductory article outlines major achievements of and setbacks for the new democracy and the challenges facing it in future. It provides the background for the evaluations of a range of quality of life domains and issues including poverty and inequality, crime, the HIV/AIDS epidemic, migration and housing, religiosity, reconciliation, and optimism for the future which are covered in the eleven articles that follow. The introduction divides the articles under the headings of challenges, achievements, monitoring quality of life, and social capital for the future. The overview article concludes that improvements in quality of life have been uneven but goodwill and a positive outlook bode well for South African quality of life in future.