Comparative transcriptome analysis of litchi ( Litchi chinensis Sonn.) buds at two developmental stages revealed multiple processes involving various phytohormones regulating floral initiation, and expression of numerous flowering-related genes. Floral initiation is a critical and complicated plant developmental process involving interactions of numerous endogenous and environmental factors, but little is known about the complex network regulating floral initiation in litchi (Litchi chinensis Sonn.). Illumina second-generation sequencing is an efficient method for obtaining massive transcriptional information resulting from phase changes in plant development. In this study, comparative transcriptomic analysis was performed with resting and emerging panicle stage buds, to gain further understanding of the molecular mechanisms involved in floral initiation in litchi. Abundance analysis identified 5,928 unigenes exhibiting at least twofold differences in expression between the two bud stages. Of these, 4,622 unigenes were up-regulated and 1,306 were down-regulated in panicle-emerging buds compared with resting buds. KEGG pathway enrichment analysis revealed that unigenes exhibiting differential expression were involved in the metabolism and signal transduction of various phytohormones. The expression levels of unigenes annotated as auxin, cytokinin, jasmonic acid, and salicylic acid biosynthesis were up-regulated, whereas those unigenes annotated as abscisic acid biosynthesis were down-regulated during floral initiation. In addition, 188 unigenes exhibiting sequence similarities to known flowering-related genes from other plants were differentially expressed during floral initiation. Thirteen genes were selected for confirmation of expression levels using quantitative-PCR. Our results provide abundant sequence resources for studying mechanisms underlying floral initiation in litchi and establish a platform for further studies of litchi and other evergreen fruit trees.