Climate change impacts are more conspicuous in natural systems like drylands, where the consequences translate mainly into changing rainfall and land degradation patterns, increased mean temperature, decreased agricultural productivity, and biome shifts. To cope with these challenges and the consequential food and water insecurity and poverty, there is a need for adaptive strategies that promote economic productivity, environmental health, and societal development through an ecosystem-based approach. This involves the integrated management of land, water, and bioresources to promote environmental resilience by restoring, maintaining, and improving ecosystems and to support sustainable livelihoods. As it considers all the goods and services of the ecosystem, such as recreational services, biodiversity conservation, water quality, and carbon storage, in addition to food, fuel, and fiber, this novel approach is more efficient than the traditional technical measures. As a result, this approach has gained importance in recent times in the research arena and in making policy decisions. Increasing the vegetation cover by planting drought-tolerant crops, resorting to water-efficient cropping practices, and facilitating groundwater management, afforestation and reforestation strategies, rehabilitation of mine areas, etc., are some of the dryland conservation and rehabilitation measures adopted for sustainable development. A proper assessment of the goods and services of drylands, along with capacity building and knowledge sharing, would enable the development of a cost-effective approach tailored specifically to the region. Healthy ecosystems with improved soil health, enhanced water security, and biodiversity conservation could foster a sustainable future for communities reliant on these fragile drylands.