MYB transcription factors are involved in the regulation of plant development and response to biotic and abiotic stress. In this study, TaMyb1D, a novel subgroup 4 gene of the R2R3-MYB subfamily, was cloned from wheat (Triticum aestivum L.). TaMyb1D was localized in the nucleus and functioned as a transcriptional repressor. The overexpression of TaMyb1D in tobacco (Nicotiana tabacum) plants repressed the expression of genes related to phenylpropanoid metabolism and down-regulated the accumulation of lignin in stems and flavonoids in leaves. These changes affected plant development under normal conditions. The expression of TaMyb1D was ubiquitous and up-regulated by PEG6000 and HO treatments in wheat. TaMyb1D-overexpressing transgenic tobacco plants exhibited higher relative water content and lower water loss rate during drought stress, as well as higher chlorophyll content in leaves during oxidative stress. The transgenic plants showed a lower leakage of ions as well as reduced malondialdehyde and HO levels during conditions of drought and oxidative stresses. In addition, TaMyb1D up-regulated the expression levels of ROS- and stress-related genes in response to drought stress. Therefore, the overexpression of TaMyb1D enhanced tolerance to drought and oxidative stresses in tobacco plants. Our study demonstrates that TaMyb1D functions as a negative regulator of phenylpropanoid metabolism and a positive regulator of plant tolerance to drought and oxidative stresses.