Sandalwood (Santalum album L.) tree is a member of the genus Santalum, is highly valued for its fragrant wood and essential oil. As an obligate root hemiparasite, sandalwood depends on host species for water and essential nutrients, which are transferred through specialized vascular structures known as haustoria. The growth and survival of sandalwood are largely influenced on its ability to tolerate various abiotic stresses, including salinity, drought, temperature extremes, and nutrient deficiencies. Sandalwood exhibits moderate tolerance to salinity, allowing it to survive in salt-affected soils; however, excessive salinity can inhibit its growth and development. As sandalwood thrives in tropical climates with high temperatures, extreme heat can negatively affect its growth. Cold stress, particularly in temperate regions, can significantly limit its growth and productivity. Additionally, sandalwood is sensitive to waterlogged conditions, requiring well-drained soils for optimal growth. Effective soil and water management strategies are therefore critical for sustaining sandalwood production under abiotic stress conditions. Interestingly, moderate stress may stimulate heartwood formation, as plants often produce increased levels of metabolites in response to environmental stresses. Despite these challenges, sandalwood exhibits a remarkable degree of adaptability to abiotic stress through various physiological and biochemical mechanisms. To mitigate the effects of stress, S. album increases the activity of antioxidant enzymes such as peroxidase, superoxide dismutase (SOD), and catalase in response to elevated levels of reactive oxygen species (ROS). Moreover, cultivating sandalwood with a compatible and stress-tolerant host can promote satisfactory growth and biomass production under adverse environmental conditions. Co-cultivation with host plants has been shown to significantly enhance S. album’s survival and growth under such conditions. Overall, literature suggests significant potential for cultivating sandalwood in challenging environmental conditions, given appropriate management and host selection strategies.