Psychrophilic and psychrotolerant bacteria have evolved various strategies to adapt to low temperature. One important strategy, which is crucial to the survival of the cell at low temperature, relates to the ability of the cell to modulate the fluidity of the membrane. Bacteria in general modulate membrane fluidity by altering their fatty acid composition. But, bacteria could also achieve the same by various other strategies such as by altering the lipid head group, the protein content of the membrane, the type of carotenoids synthesized, the fatty acid chain length and the proportion of cis to trans fatty acids. In addition bacteria have a two-component signal transduction pathway consisting of a membrane-bound sensor and a soluble cytoplasmic response regulator involved in the perception and transduction of low temperature signals. This review on cold adaptation highlights the various strategies by which bacteria modulate the fluidity of the membrane and the process by which it senses and transduces the low temperature signal.