Molecular and genomic studies have shown that several genes with various functions are induced by drought and cold stresses, and that various transcription factors are involved in the regulation of stress-inducible genes. The products of stress-inducible genes function not only in stress tolerance but also in stress response. Genetic studies have identified many factors that modify the regulation of stress responses. Recent progress has been made in analyzing the complex cascades of gene expression in drought and cold stress responses, especially in identifying specificity and crosstalk in stress signaling.