Glutaredoxins (GRXs) are the ubiquitous oxidoreductase enzymes, which play an important role in defense against various stresses. Here, we report the role of a CC-type GRX gene from rice, OsGRX8, in abiotic stress tolerance. OsGRX8 protein was found to be localized in nucleus and cytosol and its gene expression is induced by various stress conditions and plant hormone auxin. The over-expression of OsGRX8 in Arabidopsis plants conferred reduced sensitivity to auxin and stress hormone, abscisic acid. In addition, the transgenic Arabidopsis plants exhibited enhanced tolerance to various abiotic stresses, including salinity, osmotic and oxidative stress. Further, the transgenic RNAi rice plants exhibited increased susceptibility to various abiotic stresses, which further confirmed the role of OsGRX8 in abiotic stress responses. The microarray data analysis revealed that expression of a large number of auxin-responsive, known stress-associated and transcription factor encoding genes was altered in GRX transgenic Arabidopsis plants in response to exogenous auxin and stress conditions as compared to wild-type plants. Altogether, these findings suggest the role of OsGRX8 in regulating abiotic stress response and may be used to engineer stress tolerance in crop plants.