Drought, or insufficient soil moisture hampering crop growth, is a common abiotic stress for many field crops. This is also reported for rice-cultivated areas in many countries across the world. In this chapter, a detailed discussion was made covering the tolerance mechanisms in rice under drought, agronomic management along with genetic and physiological approaches for drought mitigation, in addition to application of simulation models for predicting the impact of drought stress. Availability of soil water, itself a life-saving input for rice cultivation, can also regulate the nutrient transport by mass flow within the soil and may cause both stresses simultaneously. Response to drought stress may vary with the crop growth stages it faces, i.e., early vegetative stage (before tillering), mid-season or reproductive stage (flowering time), terminal drought (at maturity−/grain-filling time). The prominent effects of drought stress like reduced transpiration limits growth and biomass development, reduced nutrient availability and uptake, spikelet sterility, and reduced sink size may limit achievable yields. Overcoming the genetic barriers, several breeding approaches like pedigree selection, recurrent selection, back cross-breeding, etc., have been followed to improve the yield potential, and improved varieties like Sahbhagi Dhan, Anjali, Vandana, CR Dhan 40 emerged. Further, specific genomic region, a region associated with a specific phenotype, i.e., Quantitative Trait Loci (QTLs) related to drought tolerance in rice that influence both overall yield and its contributing traits was also identified across the world. Predicting the yield loss by use of artificial intelligence or simulation models are recent developments in realizing the drought impact. Overall, this chapter provides a detailed representation of the cause, impact, and mitigation strategies of drought with a specific case of rice.