Drought stress is a considerable obstacle to sustainable legume production, as legumes exhibit heightened sensitivity to water deficiency, which can profoundly affect their growth, yield, and quality. Drought stress diminishes soil moisture, constraining water availability for essential plant processes, hence impacting nutrient absorption, photosynthesis, and nitrogen fixation—a crucial activity in legumes owing to their symbiotic association with nitrogen-fixing bacteria. The process of nitrogen fixation, which is an essential function of legumes, is inhibited when there is a drought. In order for the nitrogen-fixing bacteria known as Rhizobium to successfully form nodules on the roots of legumes, they require an adequate amount of moisture. Nitrogen fixation is reduced, which results in nutrient deficiencies. These deficiencies diminish the plant’s ability to produce healthy seeds, which in turn reduces the yield. When it comes to the health of the soil, drought causes disruptions in the microbial activity and the availability of nutrients, which in turn makes the plant’s stress worse and has an effect on the soil’s fertility over the long term. When faced with these obstacles, sustainable legume production in drought conditions requires integrated approaches. These techniques include breeding for drought-resistant cultivars, effective water management practices such as drip irrigation, and soil conservation methods to conserve moisture. It is possible for these measures to help offset the negative impacts of drought on legumes, so assuring more resilient output in environments with limited water resources.