Nucleotide sequences encoding DREB2 polypeptides are provided herein, along with plants and cells having increased levels of DREB2 gene expression, increased levels of DREB2 transcription factor activity, or both. Plants with increased levels of at least one DREB2 gene expression that exhibit increased yield, increased abiotic stress tolerance, or any combination of these, are provided. Methods for increasing yield, and abiotic stress tolerance in plants, by modulating DREB2 gene expression or activity, are also provided.