The main emphasis was given on the effects of the environmental factors viz: light, temperature, water and gaseous exchange parameters on physiology of litchi production. Environmental stresses can cause morpho-anatomical, physiological and biochemical changes in crops, resulting in a strong profit reduction. The interest has shown on the effect of temperature during panicle emergence, flower development and fruit sun burn and cracking. The stress factors like water stress, cold winter are the triggering factors to induce dormancy which promotes flowering. High temperature and low humidity during fruit growth increases sun burn and fruit cracking. Water stress during fruiting is vulnerable with respect to fruit drop. Understanding environmental factors and their interaction with physiological processes is extremely important for economically sustainable litchi production.