Modulus measurements in vertical boreholes under simulated horizontal in-situ stress conditions were performed on laboratory rock specimens. The experimental program was focused on the examination of modulus change with the variation of the orientation, magnitude and ratios of horizontal biaxial stresses. The experiment results show that the modulus increases when the magnitude of the horizontal stresses increases. The modulus measured in the minimum principal direction increased when the ratio between the horizontal principal stresses increased, while the modulus measured in the maximum principal direction decreased when the ratio of the horizontal principal stresses increased. These were caused by the tangential stresses that vary depending upon the magnitude of horizontal stresses, the applied pressure and the orientation of measurement. Also, the measured moduli were determined under tensile stress, compressive stress, or both stresses. Thus, the stress effect on deformation modulus should be considered, not only for the interpretation of the results of borehole deformability measurement, but also for the design of underground gas storage and pressure tunnel, and for the interpretation of tunnel monitoring.