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Extreme desiccation and irradiation increase the formation of reactive oxygen species in organisms. Lichens are highly resistant to potential damage, but it is not known whether biochemical interaction between their fungal and algal partners is involved in conferring stress tolerance. Here, we show that antioxidant and photoprotective mechanisms in the lichen Cladonia vulcani are more effective by orders of magnitude than those of its isolated partners. When alone, both alga and fungus suffer oxidative damage during desiccation, but in the lichen, each appears to induce up-regulation of protective systems in the other. Without the fungal contact, the alga tolerates only very dim light and its photoprotective system is only partially effective; without the alga, the glutathione-based antioxidant system of the fungus is slow and ineffective. In the lichen, this mutually enhanced resistance to oxidative stress and, in particular, its desiccation tolerance are essential for life above ground. This lifestyle, in turn, increases the chance of dispersal of reproductive propagules and ensures their joint evolutionary success.glutathione ͉ desiccation tolerance ͉ oxidative stress ͉ xanthophyll cycle