The major focus of the Australian cotton industry for pest management is to reduce the dependence on synthetic insecticides. However, despite widespread use of economic thresholds and the so called &quote;soft option&quote; IPM in the current production systems, only limited progress has been made to achieving this goal. Little emphasis has been placed on beneficial insects and since 1992, we have been funded by the Cotton Research and Development Corporation (CRDC) to develop an IPM strategy which places much more emphasis on natural enemies of the cotton pests particularly Helicoverpa spp. in order to reduce the cotton industry's dependence on synthetic insecticides. The project has developed Envirofeast (food) spray product and lucerne refugia technologies to conserve and enhance the activities of natural enemies in cotton systems. The Envirofeast product when applied to cotton crops attracts and conserve the natural enemies. The lucerne crop when interplanted in cotton as strips serves as a refuge for the natural enemies (Mensah and Harris, 1995, 1996; Mensah, 1998, 1997) and sink for another cotton pest, the green mind (Mensah and Khan, 1997). The total IPM package is being evaluated by Rhone-Poulenc Rural (Australia) Pty Ltd prior to commercialisation. We report here stages 6 and 7 of the program where we compared pest, natural enemy populations and also the yield of normal and transgenic cotton crops managed with Envirofeast IPM to those managed with conventional synthetic insecticides under the Insecticide Resistance Management strategy for 1996/97 and 1997/98 seasons.