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An interactive effect of simultaneous shade and drought stress on drought-tolerant and drought-sensitive cultivars of soybean was studied. As drought stress intensified, the net photosynthetic rate decreased in both cultivars due to reduced leaf area, relative water content, transpiration rate, stomatal conductance, chlorophyll content, and Rubisco activity which ultimately led to yield reduction. Moreover, the chlorophyll fluorescence parameters also decreased. Interestingly, a moderate shade was found helpful in alleviating the adverse effects of drought stress, specifically in resistant cultivar N12 where seed yield improved significantly under moderate drought conditions in contrast to the cultivar C103. In summary, the effect of drought stress on soybean depended on the irradiance conditions and shade could enhance soybean drought resistance, although this resistance was cultivar dependent. With appropriate cultivar selection, a moderate shade can help optimize yield and improve the performance of drought-exposed soybean. [ABSTRACT FROM AUTHOR]