Abiotic stresses arising from climate change negates crop growth and yield, leading to food insecurity. Drought causes oxidative stress on plants, arising from excessive production of reactive oxygen species (ROS) due to inadequate CO₂, which disrupts the photosynthetic machinery of plants. The use of conventional methods for the development of drought-tolerant crops is time-consuming, and the full adoption of modern biotechnology for crop enhancement is still regarded with prudence. Plant growth-promoting rhizobacteria (PGPR) could be used as an inexpensive and environmentally friendly approach for enhancing crop growth under environmental stress. The various direct and indirect mechanisms used for plant growth enhancement by PGPR were discussed. Synthesis of 1-aminocyclopropane−1-carboxylate (ACC) deaminase enhances plant nutrient uptake by breaking down plant ACC, thereby preventing ethylene accumulation, and enable plants to tolerate water stress. The exopolysaccharides produced also improves the ability of the soil to withhold water. PGPR enhances osmolyte production, which is effective in reducing the detrimental effects of ROS. Multifaceted PGPRs are potential candidates for biofertilizer production to lessen the detrimental effects of drought stress on crops cultivated in arid regions. This review proffered ways of augmenting their efficacy as bio-inoculants under field conditions and highlighted future prospects for sustainable agricultural productivity.