The dehydration-responsive element binding (DREB) transcription factors play central roles in regulating expression of stress-inducible genes under abiotic stresses. In the present work, PpDBF1 (Physcomitrella patens DRE-binding Factor1) containing a conserved AP2/ERF domain was isolated from the moss P. patens. Sequence comparison and phylogenetic analysis revealed that PpDBF1 belongs to the A-5 group of DREB transcription factor subfamily. The transcriptional activation activity and DNA-binding specificity of PpDBF1 were verified by yeast one-hybrid and electrophoretic mobility shift assay experiments, and its nuclear localization was demonstrated by particle biolisitics. PpDBF1 transcripts were accumulated under various abiotic stresses and phytohormones treatments in P. patens, and transgenic tobacco plants over-expressing PpDBF1 gained higher tolerance to salt, drought and cold stresses. These results suggest that PpDBF1 may play a role in P. patens as a DREB transcription factor, implying that similar regulating systems are conserved in moss and higher plants.