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A review of the literature regarding anhydrobiosis and cold tolerance in tardigrades is presented. During increasing desiccation, invertebrates like tardigrades, rotifers, nematodes and some collembolans are able to shut down metabolism to undetectable levels. When tardigrades are entering anhydrobiosis, a tun-like structure is formed, facilitated by structural adaptations of the cuticle. Slow dehydration is essential for tun formation, and the accumulation of trehalose during this process may help to stabilize phospholipids and proteins. Wax extrusion on the cuticle surface reduces transpiration. A fraction of 5-15% of the initial body water is retained during anhydrobiosis. Tardigrades are principally aquatic organisms, but anhydrobiosis makes it possible for some species to live in habitats with changing moisture conditions. Tardigrades in anhydrobiosis may tolerate exposure to freezing temperatures of liquid gases, and some species also survive such temperatures in their hydrated state. Few investigations are available on the relation of tardigrades to temperatures more representative to their natural environments. Experimental studies, however, from Greenland and the Antarctic Continent suggest that some species overwinter both in a hydrated frozen state and in anhydrobiosis. During the summer, a number of tardigrade species have been recorded from cryoconite holes, formed on the surface of glaciers. These species are freeze tolerant since their habitats are permanently frozen during the winter.