Drought is a major abiotic stress that confronts plant growth and productivity, thus compromising food security. Plants use physiological and biochemical mechanisms to cope with drought stress, but at the expense of growth. Green-synthesized nanoparticles (NPs) have gained great attention in agriculture due to their environmental friendliness and affordability while serving as potential biofertilizers. This study investigates the role of hematite (αFe2O3) NPs, synthesized from Aspalathus linearis (rooibos), to improve Sorghum bicolor growth under drought stress. About 18 nm, spherical, and highly agglomerated hematite (αFe2O3) NPs were obtained. Sorghum seeds were primed with 5, 10, and 15 mg/L αFe2O3 NPs, and, after seven days of germination, the seedlings were transferred into potting soil, cultivated for fourteen days, and were subsequently water deprived (WD) for a further seven days. A reduction in plant height (78%), fresh (FW; 35%) and dry (DW; 36%) weights, and chlorophyll (chl) content ((total chl (81%), chla (135%), and chlb (1827%)) was observed in WD plants, and this correlated with low nutrients (Mg, Si, P, and K) and alteration in the anatomic structure (epidermis and vascular bundle tissues). Oxidative damage was observed as deep blue (O2●−) and brown (H2O2) spots on the leaves of WD plants, in addition to a 25% and 40% increase in oxidative stress markers (H2O2 and MDA) and osmolytes (proline and total soluble sugars), respectively. Seed priming with 10 mg/L αFe2O3 NPs improved plant height (70%), FW (56%), DW (34%), total Chl (104%), chla (160%) and chlb (1936%), anatomic structure, and nutrient distribution. Priming with 10 mg/L αFe2O3 NPs also protected sorghum plants from drought-induced oxidative damage by reducing ROS formation and osmolytes accumulation and prevented biomolecule degradation. The study concludes that green synthesized hematite NPs positively influenced sorghum growth and prevented oxidative damage of biomolecules by improving nutrient uptake and osmoregulation under drought stress.