Many countries, including Iran face serious drought periods and a continuous deficit of fresh water resources due to reduced rainfall and climate change. This is an alarming situation, because water deficit is the most important abiotic stress that results in lowering crops yield. Quick solutions are, therefore, needed to cope water shortages. It may not be possible to change the drought condition but it is possible to tailor plants in order to improve their stress tolerance. Several genes responsible for different traits associated with a biotic stress resistance in plants have been isolated and characterized. These include major groups encoding enzymes for the biosynthesis of compatible compounds (proline, glycinebetain), heat shock proteins (HSPs), late embryogenic abundant (LEA), non-specific lipid transfer proteins (nsLTPs), transcription factors and so on. Thus, one promising approach is to integrate useful drought tolerance traits through genetic engineering into varieties which are ideally suited for water scarce and drought conditions. A number of transgenic plants have also been produced, covering a wide range of altered characteristics for commercial cultivation.