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Abiotic stresses, such as salt and drought, significantly affect plant development and are the major limiting factors for crop quality and productivity. The manipulation of genes involved in plant stress response facilitates plant mitigation of adverse environments. In this study, we characterized <i>CgbZIP1</i>, a differentially expressed gene under normal and salinity conditions in <i>Chrysanthemum grandiflora</i>. <i>CgbZIP1</i> was significantly upregulated by salt stress and also strongly responsive to drought stress and ABA treatments. Bioinformatics and subcellular localization analyses revealed that CgbZIP1 is a bZIP transcription factor and localized to the nucleus. Transgenic tobacco plants overexpressing <i>CgbZIP1</i> exhibited significantly enhanced salt and drought stress tolerance associated with characteristic morphological and physiological indexes. The results demonstrate the important role <i>CgbZIP1</i> plays in plant stress response and suggest its potential use in other crops for improved stress resistance.