Drought stress is still one of the worst environmental conditions that can stunt plant growth and production, lowering output and causing financial losses. Plant growth, physiological and metabolic functions are adversely affected by drought stress, which also disrupts cellular membranes, nutrition, water intake, photosynthetic devices, and antioxidant activities. With the change in climate and growing intensity of drought, nanomaterials have gained attention to improve agricultural productivity and sustainable agriculture. Since carbon nanomaterials have special structural and mechanical qualities, their application in drought and abiotic stress management has grown in the last few years. This chapter emphasizes the impacts of drought stress on plants and the roles of carbon-based nanomaterials in managing drought stresses, as well as future prospects for the long-term sustainability of agriculture.