The ground-based gravitational-wave telescopes LIGO and Virgo approach the era of first detections. Gravitational-wave observations will provide a unique probe for exploring strong-field general relativity and compact-binary astrophysics. In this talk, I describe recent predictions regarding the distributions of black-hole and neutron-star binary mergers, and progress on solving the inverse problem of turning gravitational-wave observations into astrophysical information. I highlight some exciting recent investigations into the use of gravitational waves as tests of general relativity.