Cotton (Gossypium hirsutum L.) is a fiber crop cultivated in a variety of climatic settings around the world. Cotton and its by-products are in high demand because of increased usage in the textile sector and provision of edible oil. Drought events are projected to become more frequent in many areas due to erratic rainfall patterns and rising temperatures brought on by climate change. Growth, development, yield and fiber quality of cotton is greatly affected by drought. Plants, on the other hand, have evolved many cellular and molecular systems to deal with drought stress. Plant’s response to drought relies on various factors like time span and severity of stress, growth stage of plant and time to stress exposure. Different visible adaptations are closing of stomata, epicuticular wax deposition on aerial parts, greater root area, leaf rolling, membrane stabilization and osmotic adjustment. To respond against a stress for self-defense is an important function of cell. This protection is triggered by a change in gene expression patterns. As a result of stress different qualitative and quantitative alterations occur in proteins as a consequence which lead to modulation of various pathways involved in maintaining metabolism and defending cell. In this review article different physiological, biochemical and molecular characteristics of cotton under drought stress have been discussed.