It has been known that endophyte (Neotyphodium coenophialum) is beneficial to tall fescue (Schedonorus phoenix Scop.) because the mutualistic endophyte is able to confers tolerance against abiotic and biotic stresses to tall fescue. However, this fungal endophyte produces toxic alkaloid resulting in negative effects on animal performance. Recently, Non-toxic endophyte have been developed and inserted into tall fescue to avoid detrimental effect on animal but remaining positive influence on tall fescue. In order to keep this beneficial impact, it is essential to have endophyte infected tall fescue through vertical transmission from maternal plants to seeds. Little research has been carried out on endophyte transmission. To get basic information related to endophyte transmission, experiment was conducted to examine the effect of plant genotype on endophyte transmission under water stresses. Overall endophyte concentration in seeds was higher than that in panicles and endophyte concentration in seeds and panicles relied on plant. This study revealed that drought is not a critical component to control the endophyte transmission from maternal plants to seeds. Plant genotype is an important factor controlling the endophyte transmission from plant to seed.