Bulb onion (Allium cepa L.) is an ancient crop that is thought to have originated in Central Asia and has been cultivated for over 5000 years. Classical genetic and plant breeding approaches have been used to improve onion yield, quality, and resistance against biotic and abiotic stresses. However, its biennial life cycle, cross-pollinated nature and high inbreeding depression have proved challenging for the characterization and breeding of improved traits. New technologies, notably next-generation sequencing, are providing researchers with the genomic resources and approaches to overcome these challenges. Using these genomic technologies, molecular markers are being rapidly developed and utilized for germplasm analysis and mapping in onion. These new tools and knowledge are allowing the integration of molecular and conventional breeding to speed up onion improvement programmes. In this review, we outline recent progress in onion genomics and molecular genetics and prospects for enhancing onion yield and quality in the future.