Within the next few years, GAIA and several instruments aiming to image extrasolar planets will be ready. In parallel, low-mass planets are being sought around red dwarfs, which offer more favourable conditions, for both radial velocity detection and transit studies, than solar-type stars. In this paper, the authors of a model atmosphere code that has allowed the detection of water vapour in the atmosphere of hot Jupiters review recent advances in modelling the stellar to substellar transition. The revised solar oxygen abundances and cloud model allow the photometric and spectroscopic properties of this transition to be reproduced for the first time. Also presented are highlight results of a model atmosphere grid for stars, brown dwarfs and extrasolar planets.