Natto is a traditional Japanese soyfood made of Bacillus fermented small-seeded soybeans, and is popular in Japan due to its health benefits. The quality of natto and other processed soyfoods is highly correlated with cultivar. The Virginia Tech soybean breeding program has produced small-seeded cultivars that are popular with Japanese natto producers. An overview of this breeding effort and the partnership between the breeding program and Montague Farms is presented along with a discussion of our experiences with important traits for natto cultivars. Breeding large-seeded soybeans is also discussed.