MAGGY is a gypsy-like retrotransposon isolated from the plant pathogenic fungus Magnaporthe grisea. The ability of various stresses to activate MAGGY was tested in the original and in a heterologous host (Colletotrichum lagenarium), using β-glucuronidase (GUS) as a reporter. The MAGGY promoter was activated in M. grisea by either heat shock, copper sulfate, or oxidative stress, but not by the antifungal substance p-coumaric acid. Transcriptional up-regulation of MAGGY RNA was also observed following heat shock and oxidative stress. The MAGGY promoter remained responsive to the above-mentioned stresses when transformed into a M. grisea isolate that had no endogenous MAGGY elements. In C. lagenarium, however, the MAGGY promoter showed only basal expression of GUS and no further up-regulation was induced by any of the stress treatments, suggesting that the stress-responding cis-element(s) in the MAGGY promoter is not functional in a wider range of fungi. The relationship between the activation of MAGGY by stress and phenotypic diversification in M. grisea, including variations in pathogenicity, is discussed.