The present review surveys the mechanisms behind the so called ''anhydrobiosis'' - the ability of certain organisms to survive complete dehydration. The elucidation of how such organisms escape irreversible damage from dehydration may also contribute to understanding the role of water in maintaining structural and functional integrity in fully hydrated biological membranes and cells. We have discussed the infuence of trehalose and other saccharides which have the ability to stabilize membrane during dehydration on such processes like lipid phase transition, lateral phase separation and membrane fusion. The full understanding of the pysical principles governing the stability of dry biological systems is also of practical importance for designing ways how to preserve liposomes and also living cells for a long time in the dry state.