Forages are the backbone of sustainable agriculture. They includes a wide variety of plant species ranging from grasses, such as tall fescue and bermudagrass, to herbaceous legumes, such as alfalfa and white clover. Abiotic stresses, especially salinity, drought, temperature extremes, high photon irradiance, and levels of inorganic solutes, are the limiting factors in the growth and productivity of major cultivated forage crops. Given the great complexity of forage species and the associated difficulties encountered in traditional breeding methods, the potential from molecular breeding in improving forage crops has been recognized. Plant engineering strategies for abiotic stress tolerance largely rely on the gene expression for enzymes involved in pathways leading to the synthesis of functional and structural metabolites, proteins that confer stress tolerance, or proteins in signaling and regulatory pathways. Genetic engineering allows researchers to control timing, tissue-specificity, and expression level for optimal function of the introduced genes. Thus, the use of either a constitutive or stress-inducible promoter may be useful in certain cases. In this review, we summarize the recent progress made towards the development of transgenic forage plants with improved tolerance to abiotic stresses.