Like many plants, Arabidopsis thaliana increases in freezing tolerance in response to low non-freezing temperatures, a phenomenon known as cold acclimation. Associated with cold acclimation are a number of biochemical changes including the expression of COR (cold-regulated) genes. Here we summarize recent progress we have made in understanding the function and regulation of these genes. One significant finding regarding COR gene function is that constitutive expression of COR15a in transgenic Arabidopsis plants enhances the freezing tolerance of both chloroplasts and protoplasts. These results provide the first direct evidence for a COR gene having a role in freezing tolerance. The precise mechanism of COR15a action is not yet know, but current results indicate the gene has a role in stabilizing membranes against freeze-induced damage. In regards to COR gene regulation, we have isolated a cDNA for CBF1, the first identified transcriptional activator that binds to the CRT (C-repeat)/DRE (drought responsive element), a cold- and drought-responsive DNA regulatory element present in the promoters of COR genes. Our working hypothesis is that CBF1 binds to the CRT/DRE sequence and participates in the regulation of COR genes in response to low temperature and drought.