The study of stellar populations in galaxies is entering a new era with the availability of large and high-quality data bases of both observed galactic spectra and state-of-the-art evolutionary synthesis models. In this paper we investigate the power of spectral synthesis as a means to estimate the physical properties of galaxies. Spectral synthesis is nothing more than the decomposition of an observed spectrum in terms of a superposition of a base of simple stellar populations of various ages and metallicities, producing as output the star formation and chemical histories of a galaxy, its extinction and velocity dispersion. Our implementation of this method uses the recent models of Bruzual & Charlot and observed spectra in the 3650-8000 Å range. The reliability of this approach is studied by three different means: (1) simulations, (2) comparison with previous work based on a different technique, and (3) analysis of the consistency of results obtained for a sample of galaxies from the Sloan Digital Sky Survey (SDSS).