Under drought stress, desert riparian forest plants are highly self-regulating and have their own unique water use and regulation strategies, which can respond positively in several aspects such as physiology, ecology, and individual phenotypes when coping and adapting to the stresses brought by external environmental changes. In addition, as an important component of arid zone ecosystems, desert riparian forest plants maintain the cycling process of energy and material in desert areas. Therefore, it is of great ecological value to study the role played by desert riparian forest plants in desertification control and biodiversity conservation in arid zones. The purpose of this study is to provide basic data and scientific basis for the conservation, and restoration of desert riparian forests in the inland river basin of arid zone. In this paper, the physiological and ecological responses of desert riparian plants under drought stress were analyzed by reviewing the literature and focusing on the key scientific issues such as drought avoidance mechanisms, water use, and water redistribution, and the relationship between interspecific water competition and resource sharing of desert riparian plants. The results showed that: (1) In the inland river basin of arid zone, desert riparian plants show a mutual coordination of increasing soluble sugars, proline, malondialdehyde (MDA), and decreasing peroxidase (POD), to form a unique drought avoidance mechanism, and improve their drought tolerance by changing leaf stomatal conductance resulted from regulating abscisic acid (ABA) and cytokinin (CTK) content. (2) Desert riparian forest plants have their own unique water use and regulation strategies. When the degree of drought stress increased, Populus euphratica enhanced the water flow of dominant branches by actively sacrificing the inferior branches to ensure and improve the overall survival chances of the plant, while Tamarix ramosissima weaken hydraulic conductance, and increase subsurface material inputs by reducing plant height to cope with drought stress. (3) The root systems of desert riparian plants have hydraulic uplift and water redistribution functions, and, in the hydraulic uplift process of P. euphratica and T. ramosissima root systems, there is a possibility of assisting with other species in water utilization and the existence of a resource sharing mechanism.