Through the 1950s and 60s numerous new special effects were developed which would dramatically increase the level of realism achievable in science fiction films. The pioneering work of directors such as Pavel Klushantsev would be used by major motion pictures for decades to come.^[2]

If one film could be said to have established a new high-bench mark for special effects, it would be 1968's 2001: A Space Odyssey, directed by Stanley Kubrick, who assembled his own effects team (Douglas Trumbull, Tom Howard, Con Pedersen and Wally Veevers) rather than use an in-house effects unit. In this film, the spaceship miniatures were highly detailed and carefully photographed for a realistic depth of field. The shots of spaceships were combined through hand-drawn rotoscopes and careful motion-control work, ensuring that the elements were precisely combined in the camera – a surprising throwback to the silent era, but with spectacular results. Backgrounds of the African vistas in the "Dawn of Man" sequence were combined with soundstage photography via the then-new front projection technique. Scenes set in zero-gravity environments were staged with hidden wires, mirror shots, and large-scale rotating sets. The finale, a voyage through hallucinogenic scenery, was created by Douglas Trumbull using a new technique termedslit-scan.

The 1970s provided two profound changes in the special effects trade. The first was economic: during the industry's recession in the late 1960s and early 1970s, many studios closed down their in-house effects houses. Many technicians became freelancers or founded their own effects companies, sometimes specializing on particular techniques (opticals, animation, etc.).

The second was precipitated by the blockbuster success of two science fiction and fantasy films in 1977. George Lucas's Star Wars ushered in an era of fantasy films with expensive and impressive special-effects. Effects supervisor John Dykstra, A.S.C. and crew developed many improvements in existing effects technology. They developed a computer-controlled camera rig called the "Dykstraflex" that allowed precise repeatability of camera motion, greatly facilitating travelling-matte compositing. Degradation of film images during compositing was minimized by other innovations: the Dykstraflex used VistaVision cameras that photographed widescreen images horizontally along stock, using far more of the film per frame, and thinner-emulsion filmstocks were used in the compositing process. The effects crew assembled by Lucas and Dykstra was dubbed Industrial Light and Magic, and since 1977 has spearheaded most effects innovations.

That same year, Steven Spielberg's film Close Encounters of the Third Kind boasted a finale with impressive special effects by 2001 veteran Douglas Trumbull. In addition to developing his own motion-control system, Trumbull also developed techniques for creating intentional "lens flare" (the shapes created by light reflecting in camera lenses) to provide the film's undefinable shapes of flying saucers.

The success of these films, and others since, has prompted massive studio investment in effects-heavy fantasy films. This has fuelled the establishment of many independent effects houses, a tremendous degree of refinement of existing techniques, and the development of new techniques such as CGI. It has also encouraged within the industry a greater distinction between special effects and visual effects; the latter is used to characterize post-production and optical work, while special effects refers more often to on-set and mechanical effects.