Sclerotinia sclerotiorum is one of the most damaging and economically important necrotrophic plant pathogens, infecting more than 400 plant species globally. Although the phenylpyrrole fungicide fludioxonil has high activity against S. sclerotiorum, recent reports have indicated that there is also a substantial potential for the development of fungicide resistance. However, the current study investigating five fludioxonil-resistant laboratory mutants found a significant fitness cost associated with fludioxonil resistance resulting in significantly (p < 0.005) reduced mycelial growth and sclerotia formation on PDA, as well as significantly (p < 0.05) lower pathogenicity on detached tomato leaves, with one mutant, LK-1R, completely losing the capacity to cause infection. In addition, all of the fludioxonil-resistant mutants had significantly (p < 0.05) increased sensitivity to osmotic stress (0.5 M KCl and 1.0 M Glucose), which is consistent with the proposed fludioxonil target sites within the High Osmolarity Glycerol (HOG1) stress response mitogen-activated protein kinase (MAPK) (HOG1-MAPK) signaling transduction pathway. Sequence analysis of six genes from this two-component pathway, including SsHk, SsYpd, SsSk1, SsSk2, SsPbs, and SsHog, revealed several mutations which maybe associated fludioxonil resistance. For example, six separate point mutations were found in the SsHk gene that lead to changes in the predicted amino acid sequence, including A136G, F249V, G353A, E560K, M610K, and K727R. Similarly, the SsPbs gene had three mutations (D34G, S46L, and L337E); the SsSk1 and SsYpd genes two (S53G and A795V, and E67G and Y141H, respectively) and the SsHog and SsSk2 genes one each (V220A and S763P, respectively). To the best of our knowledge, these constitute the first reports of amino acid changes in the proteins of the HOG1-MAPK pathway being associated with fludioxonil resistance in S. sclerotiorum. The study also found a positive cross-resistance between fludioxonil and dimethachlone and procymidone, but none with tebuconazole or carbendazim, indicating that the inclusion of tebuconazole within an integrated pest management program could reduce the risk of fludioxonil developing in field populations of S. sclerotiorum, and ensure the sustainable production of soybeans in China into the future.