Tall fescue (Festuca arundinacea Schreb.) is a widely used, cool-season turf grass and is relatively sensitive to water stress. Melatonin has been reported to improve abiotic stress tolerance in many plants. In this study, we demonstrated that, although shoot height and fresh weight of tall fescue seedlings were significantly reduced by drought stress, they were increased by melatonin pre-treatment compared with control plants. Chemical analyses showed that tall fescue seedlings pre-treated with melatonin exhibited decreased levels of reactive oxygen species, electrolyte leakage and malondialdehyde, but higher levels of antioxidant enzyme activities (catalase, and peroxidase) and total chlorophyll content, compared with untreated seedlings. Leaf water loss was also partially mitigated and leaf water content increased by melatonin application, resulting in improved plant growth under drought stress. Moreover, root growth of tall fescue seedlings was promoted by melatonin under osmotic stress. The results show that drought tolerance was improved in cool-season tall fescue by application of exogenous melatonin. Therefore, melatonin may potentially be used as a protectant for plants against the deleterious effects of drought or water-deficit stress.