I hate discussions on questions as broad and open-ended as "do grades really matter," because everyone who attempts an answer seems to have a different definition of "matter." Inevitably you get people who tell you they do matter, and people who counter that they're not all-important -- but the first camp wasn't necessarily arguing that they were all-important. And then you get people jumping in and talking about how grades aren't an indicator of success, yada yada yada. And then you get people talking about whether grades should matter, which is a huge deviation from the original question in and of itself. In the end, everyone basically has a very different argument to make about a very different interpretation of the question. With that preamble out of the way, let me define what I'm talking about when I say that yes, grades do matter. By "matter" I am not talking about whether I think they should. I am not talking about whether they are or are not a guarantee/promise of future success. I am talking strictly about the fact that yes, you will be evaluated as a job or grad school applicant based on your grades when you're fresh out of college. Obviously, the extent to which grades are taken into consideration varies a great deal. Certain industries -- especially banking, but also consulting and some tech firms -- use grades as a mandatory minimum entry requirement. In other words, grades won't get you in the door -- but you won't get in the door at all if you don't have the grades. They're necessary, but not sufficient. If you're an exceptional candidate who doesn't have the grades, you might be SOL in these industries until you take a year or two to prove yourself at a lesser firm or in a related field or function. That's just how it is. It's unfortunate, but it's true. There are thousands of applicants for every job opening, and little time to read through all of the resumes carefully. So an initial culling -- sometimes strictly by computer algorithm, btw -- is often done to weed out the low GPAs and other non-qualifieds right off the bat. For grad school, your grades will matter. If you're applying right out of college, they matter a great deal. If you're applying after a few years of work experience, they matter somewhat less, but they still come into play (or come back to haunt you, as I liked to think of my grades). And then, on the very fringes, you find companies who hold grades in high consideration regardless of the stage of life you're in -- be it 6 weeks or 6 years out of undergrad. Google comes to mind in this case. Friends who've applied to Google have told me that Google asks for your undergraduate GPA and even your high school SAT score for quite a few jobs. Talk about something you never expected to deal with again, but yeah, the freaking SAT. Thankfully I kicked that sucker's ass, so if I ever decide to apply to Google, at least I've got one element goin' for me. Probably not much else they want, though.