Genetic engineering is a tool for crop improvement that extends our access to beneficial traits beyond sexuallycompatible crosses. Genes from virtually any organism can be cloned and introduced into peanut. Gene function can be influenced by the regulatory elements used to control expression aswell as the genome context of the integration site(s) where one or multiple copies of the trans genes are inserted. Methods for the production of transgenic peanut (Arachishypogaea L.) that are based on biological or direct DNA transfer have been developed over the last decade. The most reliable method for the introduction of foreign DNA is microprojectile bombardment of embryogenic tissue cultures. With the use of a selectable marker gene for hygromycin resistance, transgenic plants can be recovered in 12-14 mo. Transgenic peanuts resistant to the lesser cornstalk borer have been produced with the objective of reducing aflatoxin contamination by decreasing insect damage to developing pods. The future application of this tool to increase pest resistance and enhance quality traits in peanut has enormous potential.