Drought stress provokes plants to change their growth pattern and biochemical contents to overcome adverse situations. Soybean was grown under 40 (drought) and 80% (control) of field capacity (FC) to determine the morpho-physiological and biochemical alterations that occur under drought conditions. The experiment was conducted following a randomized complete block design with three replications. The results showed that drought exerted detrimental effects on photosynthetic attributes, leaf production, pigment and water content, plant growth, and dry matter production of soybean. However, drought favored producing a higher amount of proline and malondialdehyde in soybean leaf than in the control. The pod and seed production, grain size, and seed yield of soybean were also adversely affected by the drought, where genotypic variations were conspicuous. Interestingly, the studied morpho-physiological and biochemical parameters of AGS383 were minimally affected by drought. This genotype was capable of maintaining healthier root and shoot growth, greater leaf area, preserving leaf greenness and cell membrane stability, higher photosynthesis, absorbing water and sustaining leaf water potential, and lower amount of proline and malondialdehyde production under drought conditions. The heavier grains of AGS383 make it out yielder under both growth conditions. Considering the changes in morpho-physiological, biochemical, and yield contributing parameters, the genotype AGS383 could be cultivated as a relatively drought-tolerant, high-yielding soybean variety. Further study is needed to uncover the genes responsible for the adaptation of AGS383 to drought-stress environments, and this genotype might be used as parent material in a breeding program to develop a high-yielding, drought-tolerant soybean variety.