To study tissue culture in potato, stem explants with axillary buds were cultured on 6 MS media with different types and concentrations of growth regulators. The most suitable medium was specified on the basis of growth of axillary buds. Using internode and leaf explants taken from in vitro grown plants, the effect of growth regulator concentration on callus induction, the effect of cultivar and explant on callus induction and regeneration, the effect of light on callus induction and finally direct regeneration were investigated. Somaclonal variation was studied in view of variations in the number of chromosomes on calli, regenerated shoots of calli as well as direct regenerated shoots. Variations such as dihaploploidy, pentaploidy, hexaploidy as well as octaploidy were observed on the derived roots of callus but there was no variation observed on either regenerated shoots of calli or direct regenerated shoots.