1. Environmental stress is one of the important causes of biological dispersal. At the same time, the process of dispersal itself can incur and/or increase susceptibility to stress for the dispersing individuals. Therefore, in principle, stress can serve as both a cause and a cost of dispersal.2. Desiccation stress is an environmentally relevant stress faced by many organisms, known to shape their population dynamics and distribution. However, the potentially contrasting roles of desiccation stress as a cause and a cost of dispersal have not been investigated. Furthermore, while desiccation stress often affects organisms in a sex-biased manner, it is not known whether the desiccation-dispersal relationship varies between males and females.3. We studied the role of desiccation stress as a cause and cost of dispersal in a series of experiments using D. melanogaster adults in two-patch dispersal setups. We were interested in knowing whether (a) dispersers are the individuals that are more susceptible to desiccation stress, (b) dispersers pay a cost in terms of reduced resistance to desiccation stress, (c) dispersal evolution alters the desiccation cost of dispersal, and (d) females pay a reproductive cost of dispersal. For this, we modulated the degree of desiccation stress faced by the flies as well as the provision of rest following a dispersal event.4. Our data showed that desiccation stress served as a significant cause of dispersal in both sexes. Further investigation revealed an increase in both male and female dispersal propensity with increasing desiccation duration. Next, we found a male-biased cost of dispersal in terms of reduced desiccation resistance. This trend was preserved in dispersal-selected and nonselected controls as well, where the desiccation cost of dispersal in females was very low compared to the males. Finally, we found that the females instead paid a significant reproductive cost of dispersal.