Abiotic stress adversely affects plant growth and metabolism and as such reduces plant productivity. Recognized as a major contributor in the production of reactive oxygen species (ROS), it hinders the growth of plants through induction of oxidative stress. Biostimulants such as melatonin have a multifunctional role, acting as a defense strategy in minimizing the effects of oxidative stress. Melatonin plays important role in plant processes ranging from seed germination to senescence, besides performing the function of a biostimulant in improving the plant’s productivity. In addition to its important role in the signaling cascade, melatonin acts as an antioxidant that helps in scavenging ROS, generated as part of different stresses among plants. The current study was undertaken to elaborate the synthesis and regulation of melatonin in plants, besides emphasizing its function under various abiotic stress namely, salt, temperature, herbicides, heavy metals, and drought. Additionally, a special consideration was put on the crosstalk of melatonin with phytohormones to overcome plant abiotic stress.