In 1845, Lord Rosse constructed a new telescope and was able to distinguish between elliptical and spiral-shaped nebulae. He also managed to make out individual point sources in some of these nebulae, lending credence to Kant's earlier conjecture.

In 1917, Heber Curtis had observed the nova S Andromedae within the "Great Andromeda Nebula" (Messier object M31). Searching the photographic record, he found 11 more novae. Curtis noticed that these novae were, on average, 10 magnitudes fainter than those that occurred within our galaxy. As a result he was able to come up with a distance estimate of 150,000 parsecs. He became a proponent of the "island universes" hypothesis, which held that the spiral nebulae were actually independent galaxies. In 1920 the Great Debate took place between Harlow Shapley and Heber Curtis, concerning the nature of the Milky Way, spiral nebulae, and the dimensions of the universe. To support his claim that the Great Andromeda Nebula was an external galaxy, Curtis noted the appearance of dark lanes resembling the dust clouds in the Milky Way, as well as the significant Doppler shift.

The matter was conclusively settled by Edwin Hubble in the early 1920s using a new telescope. He was able to resolve the outer parts of some spiral nebulae as collections of individual stars and identified some Cepheid variables, thus allowing him to estimate the distance to the nebulae: they were far too distant to be part of the Milky Way. In 1936 Hubble produced a classification system for galaxies that is used to this day, the Hubble sequence.