Abstract. Recent developments of the projected shell model (PSM) are summarized. Firstly, by using the Pfaffian algorithm, the multi-quasiparticle configuration space is expanded to include 6-quasiparticle states. The yrast band of 166 Hf at very high spins is studied as an example, where the observed third back-bending in the moment of inertia is well reproduced and explained. Secondly, an angular-momentum projected generate coordinate method is developed based on PSM. The evolution of the low-lying states, including the second 0 + state, of the soft Gd, Dy, and Er isotopes to the well-deformed ones is calculated, and compared with experimental data.