Traditional mulch material (farmyard manure) has long been used in agriculture. However, recent developments have also introduced the scientific community and farmers to advanced chemicals such as potassium polyacrylamide (KPAM), which has revolutionised the concept of the soil water-holding capacity to many compared with other materials being used. To compare the effect of different organic and inorganic soil amendment materials under water stress conditions, a two-year (2018 and 2019) field study was conducted. The main plots consisted of irrigation treatments, i.e., I0 (control irrigation), I1 (drought-induced by skipping irrigation at the 4th leaf stage), and I2 (drought-induced by skipping irrigation at the anthesis stage). The subplots included a control treatment and soil amended with different conditioners such as potassium polyacrylamide (KPAM, 30 kg/ha), farmyard manure (FYM, 4 tons/ha), and biochar (10 tons/ha); these were mixed thoroughly with the soil before sowing. The results showed a significant reduction in the water relation parameters (water potential up to 35.77% and relative water content up to 21%), gas exchange parameters (net CO2 assimilation rate up to 28.85%, stomatal conductance up to 43.18%, and transpiration rate up to 49.07%), and yield attributes (biological yield up to 8.45% and grain yield up to 32.22%) under drought stress conditions. In addition, water stress also induced an increase in the synthesis of osmoprotectants (proline up to 77.74%, total soluble sugars up to 27.43%, and total free amino acids up to 11.73%). Among all the soil conditioners used, KPAM significantly reduced the negative effects of drought stress on the wheat plants. Thus, it could be concluded that the use of soil conditioners is a promising method for dealing with the negative consequences of drought stress for achieving sustainable crop yields.