Digestive tract development in calves presents a uniquely organized system. Specifically, as the rumen develops and becomes colonized by microorganisms, a calf physiologically transitions from a pseudo-monogastric animal to a functioning ruminant. Importantly, the development of rumen in calves can directly affect the intake of feed, nutrient digestibility and overall growth. Even minor changes in the early feeding regime and nutrition can drastically influence rumen development, resulting in long-term effects on growth, health, and milk yields in adult cattle. Rumen development in newborn calves is one of the most important and interesting areas of calf nutrition. This paper presents a comprehensive review of recent studies of the gastrointestinal (GI) tract development in calves. Moreover, we also describe the effect of the environment in shaping the GI tract, including diet, feed additives and feeding management, as well as discuss the strategies to promote the physiological and microbiological development of rumen.