Topdressing adds nutrients to the lawn. Organic material such as topsoil and compost helps retain moisture in the ground and contains microorganisms that feed the lawn. Topdressing also fills in spots where the soil has settled over time, creating a more level surface.
You can topdress annually during spring maintenance, or monthly if the soil is poor. Apply less than 1/4 inch of topsoil for topdressing. Mow the lawn beforehand. The ground should be dry for topdressing because the lawn can get compacted from walking on it when it's wet. Use a push broom to work the topsoil below the grass blades.
Topdressing is also necessary after aeration. Aerate when the soil is too compacted for air and water movement. Remove plugs of soil with a coring tool, then topdress the holes with topsoil or compost to keep the roots adjacent to the hole from drying out. Aerate in the fall in temperate climates.