Worldwide fruit crop yield is seriously threatened by drought stress; hence novel approaches to improve drought tolerance must be investigated. In this context, nano-selenium (Se) has come to light as a promising contender, exhibiting a variety of functions in reducing the negative consequences of drought stress. This review aims to summarize the present knowledge on the functioning of nano-Se in improving fruit crops' resistance to drought stress. In terms of physiology, there are evidence that nano-Se enhances water consumption efficiency and controls stomatal conductance to help maintain cellular water balance and improves photosynthetic efficiency by preventing oxidative damage and maintaining chlorophyll concentration during droughts. By scavenging reactive oxygen species (ROS) and regulating the activities of antioxidant enzymes, nano-Se functions as an effective antioxidant at the biochemical level, avoiding cellular damage and preserving redox homeostasis. Therefore, this review examines the role of nano-Se in accumulation of osmolytes, such as soluble sugars and proline, which helps with osmotic adjustment and cellular osmo-protection against dehydration caused by drought. Additionally, the review examines notable interactions of nano-Se with soil properties, impacting microbial populations, soil water retention capacity, and nutrient availability, hence mitigating the negative impacts of drought stress on plant growth and development. By improving the quality, yields and market ability of fruit crops, nano-Se holds potential as a tool for enhancing agricultural sustainability, particularly under stress conditions, but its widespread application requires careful evaluation of environmental risks, long-term effects, and economic viability. The current review summarizes its diverse functions at the physiological, biochemical, and soil levels highlighting how important it is for water-limited, sustainable agriculture.