Rice (Oryza sativa L.) is a warm-season plant exposed to various stresses. Low temperature is an important factor limiting extension of rice cultivation areas and productivity. Previously, we have demonstrated that tomato ERF protein TERF2 enhances freezing tolerance of transgenic tobacco and tomato plants. Herein, we report that overexpression of TERF2 enhances transgenic rice tolerance to cold without affecting growth or agronomic traits. Physiological assays revealed that TERF2 could not only increase accumulation of osmotic substances and chlorophyll, but also reduce reactive oxygen species (ROS) and malondialdehyde (MDA) content and decrease electrolyte leakage in rice under cold stress. Further analysis of gene expression showed that TERF2 could activate expression of cold-related genes, including OsMyb, OsICE1, OsCDPK7, OsSODB, OsFer1, OsTrx23, and OsLti6, in transgenic rice plants under natural condition or cold stress. Thus, our findings demonstrated that TERF2 modulated expression of stress-related genes and a series of physiological adjustments under cold stress, indicating that TERF2 might have important regulatory roles in response to abiotic stress in rice and possess potential utility in improving crop cold tolerance.