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The role of plant phospholipase C-mediated signaling has been implicated in various phases of plant growth and development. In this study, we report on the isolation and characterization of phospholipase C from tobacco and demonstrate that transcripts of phospholipase C are up-regulated in responses to drought and salt stress. These responses are likely by abscisic acid (ABA). Transgenic tobacco plants overexpressing the phospholipase C protein were found to tolerate higher levels of drought and also salinity stress. This tolerance could be mediated by the regulation of genes downstream to phospholipase mediated signaling. As a demonstration, when tested the transgenic plants showed higher transcript of heat shock factor NtHSF2, heat shock protein HSP70-3 and an AP2 domain transcription factor. Also the transgenic plants showed higher accumulation of sodium in older leaves compared to the …