Abstract. In this paper we present a construction of stable bundles on Calabi-Yau threefolds using the method of bundle extensions. This construction applies to any given Calabi-Yau threefold with h 1,1 > 1. We give examples of stable bundles of rank 2 and 4 constructed out of pure geometric data of the given Calabi-Yau space. As an application, we find that some of these bundles satisfy the physical constraint imposed by heterotic string anomaly cancellation.