Ocimum basilicum L. sweet basil is native to India and Iran, an aromatic herb and perennial belong to the Lamiaceae family. This study was done at the Genetic Engineering and Biotechnology Laboratory, Faculty of Agriculture, Damanhour University, Egypt from 2019 to 2020. Developing stress tolerant plants using in vitro selection is an effective method; therefore, the purpose of this study was to detect the best concentration of phytohormones to produce embryogenic callus of Ocimum basilicum L. and study the effect of poly ethylene glycol (PEG) on embryogenic callus of basil.Leaf specimens of basil were cultured on MS medium (Murashige and Skoog) with concentration of auxin and cytokinin.  A₁ (2, 4-D at 0.5 mg/l), A₂ (2, 4-D at 1.0 mg/l) and A₃ (2, 4-D and BAP at 1.0 mg/l and 0.2 mg/l). Embryogenic callus of basil was sub cultured under normal and drought stress media containing different concentration of polyethylene glycol (PEG; M.W 4000) at 2, 5 and 10%. Results showed that medium A₃ was the best medium of embryogenic callus induction. Also, the concentration of PEG at 5% was shown maximized callus survivability compared with the other PEG concentrations with no significant effect. This study adds new information on the effect of 5% PEG which showed the highest (positive) survivability of callus. The morphogenic of calluses on 5% PEG were yellowish, friable while the morphogenic of calluses on 10% PEG turned into brown.