Climate change and the increasing frequency and severity of drought events pose significant challenges for sustainable agriculture worldwide. Soil microorganisms, both beneficial and pathogenic, play a crucial role in mediating plant-environment interactions and shaping the overall functioning of agroecosystems. This review synthesizes the current knowledge on the contrasting adaptive mechanisms utilized by different groups of plant-soil microorganisms focusing on beneficial and pathogenic bacterial and fungal communities in response to drought and desiccation stresses. The review examines the common survival strategies employed by microbes specifically rhizobacteria and arbuscular mycorrhizal fungi, such as the production of osmoprotectants, altered gene expression, and biofilm formation. It also highlights the distinct adaptive mechanisms of pathogenic versus mutualistic microbes, with pathogens tending to prioritize virulence factors and suppress plant growth, while beneficial microbes enhance plant growth and stress tolerance. Genetic exchange such as horizontal gene transfer (HGT) is identified as a key adaptive mechanism, allowing both pathogenic and non-pathogenic microbes to acquire beneficial traits like stress tolerance and virulence factors. Environmental stressors like drought can promote increased genetic exchange and the spread of pathogenic traits within the soil microbiome. The complex interplay between drought-adapted microbes and their interactions with plants is discussed, emphasizing the need for a deeper understanding of soil microbiome dynamics under climate change. This knowledge can be utilized in sustainable agricultural practices to mitigate the impacts of drought on plant health and productivity. This review provides insights into the divergent survival strategies of soil microorganisms in response to drought and desiccation, for managing the resilience of agroecosystems to climate change.