Reversible histone methylations of the fourth lysine on histone 3 (H3K4) are key epigenetic marks, involved in establishing and maintaining epigenetic transcriptional states of genes during normal development and in response to environmental stresses like drought. Their dynamic regulation is modulated by a complex mechanism employing specific epigenetic factors such as histone lysine methyltransferases and the counteracting histone demethylases. The identification and characterization of such drought-responsive epigenetic factors involved in H3K4 methylation in temperate cereal crops would provide a major advantage in their breeding for higher yield. For better understanding these mechanisms and their implication in drought stress tolerance in the annual cereal crop barley (Hordeum vulgare L.), we have isolated, cloned and characterized a drought-induced PKDM7 subfamily-like H3K4 demethylase homologue, designated HvPKDM7-1. The complete cDNA clone obtained using the RCA-RACE (Rolling Circle Amplification-RACE) method, contained a 3,861 bp ORF encoding the 1,287 a.a. putative protein, which includes conserved residues compatible with the demethylation activity. Comparative genomic analysis enabled us to locate the gene on locus 3260 on the long arm of the barley chromosome 1H. Constant transcript accumulation in early barley seed development was followed by almost complete silencing, coinciding with the stage of active storage of proteins. Transcript induction by drought stress was observed in two barley cultivars and was considerably higher in the drought-tolerant cultivar, indicating that HvPKDM7-1 may be actively involved in drought tolerance control, an agronomically very important trait.