Genetically modified crops with improved tolerance to insect pests have enhanced agricultural productivity and reduced pesticide usage with consequent environmental benefits. Crop such as Bt cotton and Bt corn are already grown in many developing countries although the crop acreage is still small. To harness the full potential of Bt technology to benefit the resource-poor farmers, it must be extended to crops such as rice, cassava, sweet potato, chickpea and others. Application of biotechnology in developing countries faces many challenges that must be addressed: financial, technical, political, public perception, intellectual-property, biosafety and trade-related issues. To ensure that developing countries reap benefits of this technology with minimal problems, coherent policy initiatives are needed. Network of laboratories in developed countries with public-private partnerships must be fostered. It is also important to develop science-based regulatory framework that are enabling, not burdensome. Concerted efforts are also needed to create an awareness of its potential benefits and to address the concerns related to its use through dialog among the various stakeholders.