Genetic engineering techniques allow the transfer of novel genetic material from one organism to another and hence has the potential to augment classical plant breeding techniques by extending the gene pool accessible for crop improvement We have established a program of research and development aimed at using this new technology to improve the performance of Australian cotton cultivars under our intensive production systems. The major limitations to cotton production in Australia, other than the availability of water, is competition from other organisms, be they insect pests (such as HeIicoverpa larvae), weeds or fungal pathogens (such as the wilt pathogens Ventcillium and Fusarium). The first generations of genetically engineered cotton plants will inevitably be aimed at minimising the impacts of these other organisms, while maintaining and improving the level and quality of Australian cotton production. Already transgenic cotton (INGARD and Roundup Ready varieties) coming through this program are making a major impact on pesticide usage and the weed control options available to the Industry. In the future, as our understanding of plant growth and development expands, other targets for genetic engineering such as improvements in quality or plant physiology will become possible. The aim of this project has been to develop and maintain the basic technology and expertise to produce new cotton cultivars using genetic engineering. In particular, to use the currently available molecular and tissue culture skills to produce herbicide tolerant, insect tolerant and disease tolerant cotton plants by the introduction of novel genes from other organisms. It complements and extends the more traditional cotton breeding program (CSP96C) by providing access to molecular biology and laboratory skills necessary for the breeding of transgenic cotton varieties.