Drought poses a significant challenge in global agriculture, adversely affecting the growth and development of various leguminous crops, including soybeans (Glycine max). The threat of drought episodes to soybean productivity in the USA has been on the rise, especially considering that only about 8% of the U.S. soybean production area is under irrigation. Consequently, addressing the need to enhance soybean resilience to drought has become a focal point for plant scientists. In addition to biotechnological methods, the application of signaling molecules (SMs) to plants has recently emerged as a promising strategy to combat drought. In this project, we explored the potential of ethanol (Eth) as a promising SM to enhance drought tolerance in contrasting soybean varieties. Our investigation delved into understanding the fundamental physiological, biochemical, hormonal changes and molecular mechanisms modulated by Eth treatment. Furthermore, by undertaking comparative transcriptome and metabolome analyses between drought-tolerant and -sensitive soybean varieties, we unveiled key molecular mechanisms and identified promising candidate genes. This mechanistic understanding allowed us to identify a genetic signature that paves the way for further advancements in soybean drought tolerance through genetic engineering techniques, such as overexpression or gene editing of selected candidate genes. Utilizing cost-effective ethanol at low concentrations ($1.0 for 7.0 gallons of 20 mM Eth) to improve soybean drought tolerance offers immediate benefits to smallholder farmers in drought-prone areas. The approach is both economically viable and low risk, providing a sustainable alternative for improving soybean productivity, especially in regions where advanced technologies like transgenic approaches may not be readily accessible or encouraged.