To identify components of the plant stress signal transduction cascade and response mechanisms, we screened plant genes using reverse Northern blot analysis, and chose the ethylene responsive element binding protein 1 (StEREBP1) for further characterization. To investigate its biological function in the potato, we performed Northern blot analysis and observed enhanced levels of transcription in response to several environmental stresses including low temperature. In vivo targeting experiments using a green fluorescent protein (GFP) reporter indicated that StEREBP1 localized to the nucleus of onion epidermal cells. StEREBP1 was found to bind to GCC and DRE/CRT cis-elements and both microarray and RT-PCR analyses indicated that overexpression of StEREBP1 induced expression of several GCC box-containing stress response genes. In addition, overexpression of StEREBP1 enhanced tolerance to cold and salt stress in transgenic potato plants. The results of this study suggest that StEREBP1 is a functional transcription factor that may be involved in abiotic stress responses in plants.