A successful compost bedded dairy barn is the result of combining the management of the composting resting bed and the function of the structure enclosing the cow resting area to achieve an environment for excellent cow welfare and comfort while maintaining efficient milk production. The housing structure must provide enough air exchanges for removal of bed and cow produced moisture, heat and gases (e.g., CO₂, NH₃) and air velocity over the cows for heat dissipation and the compost bed for moisture drying. The system has additional values: reduced environmental impacts on air and water quality. Quality of water and air resources benefit from the resting area composting processes. Odors are reduced through aerobic decomposition, while these same processes bind fertilizer N and P in the organic form, which allow slow release of these plant nutrients after land application. Further, manure storage occurs under roof which allows storage times of one year or longer depending on bedding usage or area allowed per cow. Storage flexibility improves field application timing of the compost to meet field conditions and cropping nutrient needs. Challenges to economic success come from the cost and availability of bedding materials as well as a housing envelope whose structural components can respond to climatic conditions to meet cow comfort in the region of the world where the dairy is located. Bedding materials may be expensive, limited in availability when needed (particularly cold and wet weather). In the United States, wood sawdust is primarily used, but alternate biomass from crop plants need to be assessed so that bedding supplies can be increased. Understanding the impacts that alternate materials exhibit in the compost bed and the housing envelope is needed to adjust the bed and structure management recommendations. An example would be low C/N ratio biomass, e.g., soybean straw, which create composting C/N ratios where high rates of NH3 are released. Various housing strategies for the compost bedded dairies have been implemented throughout the United States in different climatic conditions and will be discussed. This presentation will also summarize various challenges to cow welfare from recent research findings.