Sugarcane is a vital crop plant with significant economic importance, cultivated globally for its role as a primary source of sucrose and increasingly recognized as a key feedstock for biofuel production. The growth of sugarcane hinges on precipitation and temperature, crucial factors for sustaining high yields. However, climate change has disrupted rainfall patterns, leading to frequent and prolonged drought periods that negatively affect sugarcane productivity. Consequently, the development of sugarcane with enhanced drought tolerance traits is crucial for ensuring sustainable production in the future. This review focuses on the biotechnological strategies employed to enhance drought tolerance in sugarcane plants. Through the application of diverse biotechnological tools such as mutagenic breeding and genetic modification techniques to alter the expression of key genes, followed by intense physiological and biochemical characterisation, our comprehension of the mechanisms governing the drought response in sugarcane has significantly advanced in recent years. This knowledge base is supplemented by transcriptomic and proteomic datasets, which primarily compare susceptible versus tolerant, or genetically altered versus wild-type sugarcane genotypes. Moreover, notable success has been achieved in introducing novel genetic diversity associated with enhanced drought tolerance, a feat often unattainable through conventional breeding methods.