Drought stress seriously affects crop yield, and the mechanism underlying plant resistance to drought stress via macroautophagy/autophagy is not clear. Here, we show that a dehydrin, Medicago truncatula MtCAS31 (cold acclimation-specific 31), a positive regulator of drought response, plays a key role in autophagic degradation. A GFP cleavage assay and treatment with an autophagy-specific inhibitor indicated that MtCAS31 participates in the autophagic degradation pathway and that overexpressing MtCAS31 promotes autophagy under drought stress. Furthermore, we discovered that MtCAS31 interacts with the autophagy-related protein ATG8a in the AIM-like motif YXXXI, supporting its function in autophagic degradation. In addition, we identified a cargo protein of MtCAS31, the aquaporin MtPIP2;7, by screening an M. truncatula cDNA library. We found that MtPIP2;7 functions as a negative regulator of drought response. Under drought stress, MtCAS31 facilitated the autophagic degradation of MtPIP2;7 and reduced root hydraulic conductivity, thus reducing water loss and improving drought tolerance. Taken together, our results reveal a novel function of dehydrins in promoting the autophagic degradation of proteins, which extends our knowledge of the function of dehydrins.