Drought stress impairs crop growth and productivity. Stress-associated proteins (SAPs), a class of zinc finger proteins containing the A20/AN1 domain, function in various stress responses in plants. However, little is known about the function of SAPs in drought-stress responses in soybean, an oil and protein crop. We report that a GmSAP5 protein confers drought tolerance by increasing sensitivity to abscisic acid (ABA) and reducing stomatal aperture. Overexpression and RNA interference of GmSAP5in soybean hairy roots resulted in elevated resistance and sensitivity to drought stress, respectively. ABA and proline contents increased in GmSAP5-overexpressing plants under water-deficit conditions. Lower water loss rates and higher relative water contents were observed in GmSAP5-overexpressing plants, resulting in increased drought-stress resistance. A yeast one-hybrid assay and luciferase transient transcriptional activity assay showed that GmAREB3, an AREB/ABF transcription factor, could bind to the promoter of GmSAP5and activate its expression. These results suggest that GmSAP5 acts downstream of GmAREB3 and improves drought-stress resistance by mediating ABA signaling.