Grid computing creates the illusion of an enormously powerful computer system using a diverse assortment of simple computers. Grid computing provides many benefits that are inconceivable in simple computers and conventional distributed systems. The objective of current article is to theoretically identify the most important of these benefits. In a grid, underutilized resources including unutilized processing resources and unused disk spaces can be proficiently utilized. Various underutilized resources in the grid can be also harnessed using proper design techniques. Grid computing facilitates massive parallel processing that can be used in different disciplines. Grid-aware applications are now being developed to exploit the features of the grid which cannot be used by conventional applications. Grid computing can virtualize resources to provide interoperability among various types of computers in the grid. The other main benefits of grid computing are extensive load sharing and enhanced reliability. Moreover, grid computing is opening new avenues for research in system software and various other fields.