Trehalose synthase gene (TSase) from Grifola frondosa was transferred into sugarcane (Sac-charum hybrid L. ) using Agrobacterium-mediated method to improve sugarcane drought-tolerance. The re-sults indicated that embryogenic callus of sugarcane was sensitive to A. tumefaciens EHA105 strain in thetransformation system employed. The high frequency PPT-resistant plants were obtained from transformatedwith 3 weeks callus after incubation, which reached 4.5 % on average. The transgenic plants were confirmedby PCR and Southern analysis. Some transgenic plants showed multiple phenotypic alterations and some plantsdemonstrated improvement tolerance to osmotic stress.