Yeast of Saccharomyces cerevisiae (SCY) origin has over long time been incorporated into domestic animal diets. In calves, several products have offered improved performance and health. Although several types of research have been completed, the mode of action of SCY is not clear in calves. Under this review, we have highlighted the works available in the literature on the use of SCY in calves performance, health, immunity, and the gut environment. Both active live yeast and yeast culture have positive effects on growth, rumen, small intestines, immunity and general health of the calf. Specifically, SCY can improve DMI, growth, feed efficiency and reduce diarrhea in calves. Furthermore, subtle improvements are seen in rumen fermentation (increased butyrate production) and rumen papillae growth. These positive results are, however, more pronounced in calves that are under stress or exposed to significant levels of disease-causing agents. There is a need for further research in areas such as gut morphology, gut microbiology and immunity using latest molecular methods to fully understand how SCY helps the growth and development of calves.