The major environmental factor limiting the range of adaptation for wheat is drought. Fourteen wheat genotypes (Triticum aestivum L.) were grown under two environments (irrigated and rain fed) to determine physiological and photosynthetic responses to drought. Combined analysis of variance of the data showed that the environment was a significant source of variation for leaf chlorophyll content (LCC), stomatal conductance (gs) and grain yield (GY). Wheat genotypes differed significantly for LCC, gs and GY. All the measured traits under water-stress conditions except maximum photochemical efficiency of PSII (Fv/Fm) were lower than those under nonstress conditions. Mean GY in rain-fed conditions was 11.26% lower than that in irrigated conditions. The genotypes number 13 (Marvdasht) and 8 (M-81-13) exhibited the highest GY per unit area in both irrigation and rain-fed conditions. It was concluded that the higher LCC and gs under drought-stress conditions could possibly be the proper criteria for screening the drought-tolerant wheat genotypes under field conditions.