The tetrahydropyramidine hydroxyectoine acts as an osmolyte in a range of bacterial species, but its use as a desiccation protectant is less well explored. Recently, it was demonstrated that hydroxyectoine provides effective stabilisation of the Gram-negative species Pseudomonas putida, which is only relatively poorly preserved by the better-characterised protectant, trehalose. It is now shown that hydroxyectoine also protects the paradigmatic bacterium, Escherichia coli: osmotically-preconditioned E. coli dried in hydroxyectoine exhibited a high degree of desiccation tolerance, similar to that achieved using trehalose in this species. Hydroxyectoine is apparently accumulated from hypersaline medium in preference to trehalose biosynthesis, but E. coli loaded with hydroxyectoine in this way showed reduced stability in the dry state. This suggests that, although both hydroxyectoine and trehalose perform equally well as extracellular protectants, trehalose is preferred for intracellular protection.