Cotton (Gossypium hirsutum), the most important textile crop worldwide, often encounters abiotic stress such as drought and waterlog during its growth season (summer), and its productivity is significantly limited by adverse factors. To investigate the molecular adaptation mechanisms of this plant species to abiotic stress, a gene encoding the plasma membrane intrinsic protein (PIP) was isolated in cotton, and designated as GhPIP2;7. Quantitative reverse transcriptase polymerase chain reaction analysis indicated that GhPIP2;7 was preferentially expressed in cotyledons and leaves, and its expression was up-regulated in leaves after drought treatments. Strong expression of GUS gene driven by GhPIP2;7 promoter was detected in leaves of 5- to 10-day-old transgenic Arabidopsis seedlings, but GUS activity gradually became weak as the seedlings further developed. GhPIP2;7 promoter activity was also remarkably induced by mannitol treatment. Furthermore, yeast cells over-expressing GhPIP2;7 displayed relatively higher drought tolerance, compared with controls. Over-expression of GhPIP2;7 in Arabidopsis enhanced plant tolerance to drought stress. Collectively, these data suggested that GhPIP2;7 gene may be involved in leaf development and in response to drought stress.