Salicylic acid, a naturally occurring phenolic compound, is a multifaceted plant growth modulator and activates the systemic acquired defence in plants as a response to pathogen effect. In recent years in addition to the activation of SAR, SA is reported to play a major role in the modulation of plant responses to biotic and abiotic stresses like drought, salinity, heat, heavy metal stress, osmotic stress, defence against pathogenic elicitors and effectors and symbiotic relationships. Additionally, SA has well laid out physiological roles in growth and development of plants. Several of the targets of SA have been recognized, and the molecular mode of action elucidating the complex signal transduction and involving crosstalk of multiple metabolic pathways is being unravelled. This chapter deals with recent findings on the improvement of drought tolerance vis-a-vis salicylic acid-induced modulation of metabolic pathways and signalling mechanisms.