Drug discovery is a complex process that includes the identification of biological targets as well as the identification of leads that aim at altering or inhibiting the function of a particular target. The budding yeast Saccharomyces cerevisiae has long been recognized as a valuable model organism for studies of eukaryotic cells since many of the basic cellular processes between yeast and humans are highly conserved. In this review, we highlight emerging yeast-based functional genomic and proteomic technologies that are advancing the utility of yeast as a model organism in the drug-discovery process. These approaches include the utilization of yeast deletion strain collection, synthetic genetic array combined with chemical genomics, variations of the yeast two-hybrid system, yeast biosensor assay, and protein microarrays. Although still at an early stage, these technologies show promise as novel and useful methods for development of target-specific therapeutic approaches.