Climate change is a crucial issue among the serious emerging problems which got a global attention in the last few decades. With the climate change, worldwide crop production has been seriously affected by drought stress. In this regard, various technologies including traditional breeding and genetic engineering are used to cope with drought stress. However, the interactions between plants and endophytic bacteria emerged as an interesting era of knowledge that can be used for novel agriculture practices. Endophytic bacteria which survive within plant tissues are among the most appropriate technologies improving plant growth and yield under drought conditions. These endophytic bacteria live within plant tissues and release various phytochemicals that assist plant to withstand in harsh environmental conditions, i.e., drought stress. Their plant growth-promoting characteristics include nitrogen fixation, phosphate solubilization, mineral uptake, and the production of siderophore, 1-aminocyclopropane-1-carboxylate (ACC) deaminase, and various phytohormones. These plant growth promoting characteristics of endophytic bacteria improve root length and density, which lead to the enhance drought tolerance. In addition, plant-endophytic bacteria assist plant to withstand against drought stress by producing drought-tolerant substances, for instance, abscisic acid, indole-3-acetic acid, ACC deaminase, and various volatile compounds. Indirectly, endophytic bacteria also improve osmotic adjustment, relative water content, and antioxidant activity of inoculated plants. Altogether, these bacterial-mediated drought tolerance and plant growth-promoting processes continue even under severe drought conditions which lead to enhanced plant growth promotion and yield. The present review highlights a natural and environment-friendly strategy in the form of drought-tolerant and plant growth-promoting endophytic bacteria to improve drought tolerance in plants.