This paper describes the basis for techniques such as stochastic subdivision in the theory of random processes and estimation theory. The popular stochastic subdivision construction is then generalized to provide control of the autocorrelation and spectral properties of the synthesized random functions. The generalized construction is suitable for generating a variety of perceptually distinct high-quality random functions, including those with non-fractal spectra and directional or oscillatory characteristics. It is argued that a spectral modeling approach provides a more powerful and somewhat more intuitive perceptual characterization of random processes than does the fractal model. Synthetic textures and terrains are presented as a means of visually evaluating the generalized subdivision technique. Categories and Subject Descriptors: I.3.3 [Computer Graphics]: Picture/Image Generation; I.3.7 [Computer Graphics]: Three Dimensional Graphics and Realism -<F11.