Grain number and weight within a spikelet are major yield components which determine the grain yield in wheat. The objective of this study was to explore genetic gains in grain performance within wheat spikelets at the individual grain level and its effect on grain yield and evaluate genetic progress in stem internode length and other yield-related traits. We conducted field experiments across three growing seasons in the western Yellow and Huai Valley of China; incorporating 17 bread wheat cultivars released from 1948 to 2012. Yields were significantly correlated with year of release. Yield gains equated to 3.95 g m−2 yr−1 in response to increases in total grain weight per m2 (GW) in proximal (G1 and G2) and distal (G3 and G4) grains, despite a decline in the proportional contribution of proximal grains to yield and increase in the proportional contribution of distal grains to yield with year of release. Grain number per m2 (GN), thousand-grain weight (TGW), and harvest index (HI) increased with year of release, but plant height decreased. Both grain number per spikelet of proximal and distal grain contributed to the increase in total GN. However, the contribution ratio of GN in proximal grains to total GN declined, and the proportion in distal grains increased. Average single grain weight (SGW) increased linearly at G1, G2, G3, and G4 with year of release and contributed to the increase in TGW. The G3 and G4 grain positions had much lower individual grain weights but increased at a faster rate than G1 and G2. At G1, G2, and G3 grain positions, from bottom to top spikelets, the newly released cultivars had the heaviest grains and the old cultivars had the lightest grains. New cultivars had more spikelets than old cultivars and the number of grains (proximal and distal grains) in the apical spike increased with year of release. The length of five internodes decreased significantly with year of release, more so in the upper than lower internodes, all of which contributed to the decline in plant height. In summary, increasing the number and weight of distal grains could increase grain yield, TGW, and GN.