Drought is the most serious environmental challenge that limits plant growth and causes more severe yield losses than other abiotic stress factors resulting in a serious food shortage. Nanomaterials (NMs) are considered as vital tools to overcome contemporary and future challenges in agricultural production. Recently, NMs have been applied for enhancing seed germination, growth, physiology, productivity and quality attributes of various crops under normal or stress conditions. Up to date, there is no comprehensive review about the potential role of NMs in attenuating the drought-induced adverse effects in crop plants. Thus, this review will highlight this issue. Generally, NMs minimize drought-induced osmotic stress by accumulation of osmolytes that result in osmotic adjustment and improved plant water status. In addition, NMs play a key role to improve root growth, conductive tissue elements and aquaporin proteins facilitating uptake and translocation of water and nutrients. Furthermore, NMs reduce water loss by stomatal closure due to abscisic acid signaling. However, this leads to reduced photosynthesis and oxidative stress damage. At the same time, NMs increase the content of light-harvesting pigments, enzymatic and non-enzymatic antioxidants leading to enhancing photosynthesis with reducing oxidative stress damage. Overall, NMs can ameliorate the deleterious effects of drought stress in crop plants by regulation of gene expression and alternation of various physiological and biochemical processes.