One of the effects of unpredictable climatic conditions in the twenty-first century is the change in abiotic factors affecting the development and growth of plants. Amidst the various abiotic factors, water stress is the most vital factor affecting sugarcane. This study is a review of literatures that has been published and looked at how sugarcane reacts to water stress. It systematically presents the mechanisms by which the sugarcane plant responds to water stress, including physiological response, morphological response, and genomic strategies for manipulating the target genes. The traits to improve sugarcane’s ability to tolerate conditions of water stress and give a higher crop yield were considered. It was observed that water stress affects almost the entire plant process by causing reductions in chlorophyll, relative water content, the closing of stomata, stunted growth, reduced stalk length, and reduced internodes, thereby contributing to the overall decrease in sugarcane and sugar productivity. The techniques for the regulation of sugarcane adaptation to water stress, the molecular mechanisms for increments in intolerance to stress and responses were also discussed. An understanding of the techniques for regulation and amelioration of water stress impact on sugarcane productivity discussed herein will provide useful information that is necessary to improve sugarcane tolerance to water stress using biotechnology while maintaining the quality and yield of canes.