Despite the water-demanding crop, sugarcane is economically significant crop in Asia for sugar production. In recent decades, due to extreme climate changes, dry and warm weather conditions, sugarcane production is highly affected leading to drought stress which not only directly affects the sugarcane production, but also affects its sugar contents. Several stress-responsive genes were shown to have various gene expressions under drought stress. Specifically, ScDIR5, ScDIR7, ScDIR11 and ScDIR40 were found with differential expression levels. In this review, we have discussed the water deficit impact on sugarcane at the cellular and molecular levels. Low water availability affected the morphology as well as the water content of plants and resulted in the excessive accumulation of reactive oxidative species (ROS). Sugarcane plants respond to drought by activating various genes and signaling pathways. But to survive severe water stress and produce better-yielding sugarcane crops, transgenic sugarcanes with effective drought tolerance are introduced. As well as, to increase the sucrose sugar content, scientists are working for years to enhance its percentage, so that even under the biotic or abiotic stress factors, it continues to produce the maximum sucrose amount. Many countries especially Brazil is using genetically modified sugarcane for sugar production on commercial scales. Modern genetic approaches and gene manipulation strategies including the conventional breeding, genomic selection, gene transformation, gene silencing and CRISPR have been used to raise the yield of sucrose accumulation which are discussed here with future prospects.