Based on the data of sheepgrass 454 high-throughout sequencing and expression analysis results, a drought-induced gene LcWRKY5 was isolated and cloned, and the biological role of the gene has not been reported until now. Bioinformatics analysis showed that LcWRKY5 contains one conserved WD domain and belongs to the group II WRKY protein family. LcWRKY5 shows high sequence identity with predicted or putative protein products of Hordeum vulgare, Aegilops tauschii, Triticum aestivum, Brachypodium distachyon, Oryza sativa, but it has low homology with WRKYs from dicotyledonous plants. Several drought-inducibility, fungal elicitor, MeJA-responsiveness, endosperm, light, anoxic specific inducibility, and circadian control elements were found in the promoter region of LcWRKY5. Tissue-specific expression patterns showed that LcWRKY5 is expressed in roots and leaves, without expression in other tissues. The expression of LcWRKY5was induced significantly under salinity and mannitol stresses but was not notably changed under cold and Abscisic acid stress. The LcWRKY5 protein exhibits transcription activation activity in the yeast one-hybrid system. Overexpressing LcWRKY5 exhibited increased rates of cotyledon greening and plant survival in transgenic Arabidopsis compared with wild-type plants under drought stress, and the expression levels of DREB2A and RD29A in transgenic plants were enhanced under drought stress. These results indicated that LcWRKY5 may play an important role in drought-response networks through regulation of the DREB2A pathway. LcWRKY5 can be a candidate gene for engineering drought tolerance in other crops.