The state-of-the-art of lifeline system management under earthquake risk is discussed. After a historical overview and specific features of lifeline earthquake engineering, elements of lifeline earthquake engineering practice are presented. They include outline of lifeline protection technologies, lessons from recent urban earthquakes particularly Kobe 1995, and seismic code developments. Then two topics are addressed specifically. First seismic reliability under system interaction is discussed with its general scheme and an analytical methodology. Next, criteria for lifeline performance is discussed with an emphasis on quantification of qualitative issues that are needed particularly in implementation processes. After presenting a general framework, two cases, one from Kobe on water customers' response, and one from California regarding funding procedure for seismic improvement. Finally, future orientations of earthquake engineering and its relation to lifeline earthquake engineering is addressed. It is emphasized that we should establish a third generation earthquake engineering where structural and geotechnical mitigation, crisis management, and sustainable development should be integrated through multi-disciplinary developments. Some examples of multi-disciplinary research initiatives are introduced.