Drought is one of the significant abiotic stresses threatening crop production worldwide. Soybean is a major legume crop with immense economic significance, but its production is highly dependent on optimum rainfall or abundant irrigation. Also, in dry periods, it may require supplemental irrigation for drought-susceptible soybean varieties. The effects of drought stress on soybean including osmotic adjustments, growth morphology and yield loss have been well studied. In addition, drought-resistant soybean cultivars have been investigated for revealing the mechanisms of tolerance and survival. Advanced high-throughput technologies have yielded remarkable phenotypic and genetic information for producing drought-tolerant soybean cultivars, either through molecular breeding or transgenic approaches. Further, transcriptomics and functional genomics have led to the characterisation of new genes or gene families controlling drought response. Interestingly, genetically modified drought-smart soybeans are just beginning to be released for field applications cultivation. In this review, we focus on breeding and genetic engineering approaches that have successfully led to the development of drought-tolerant soybeans for commercial use.