The effect of climate change on global food security has assumed a frightening dimension in developing nations. The need for efficient management to cope with the effect of climate change became imperative. The main aim of this research is to compare the growth and yield parameters of Chilli when it subjected to temperature and water stress. Experiments were conducted on the growing seasons of 2010 and 2011 at the Open University Sri Lanka Agricultural field located at Nawala, Nugegoda using Chilli Varity MI-2 in temperature regulated polytunnels. Split plot experiment based on Completely Randomized Design with 10 replicates was applied as an experimental design. Main plot included two different wetting applications (No water stress-at field capacity level and water stress at 50 % depletion from the field capacity level) and sub plots contained 3 different temperature regimes (34 °C, 32 °C temperature and ambient temperature). According to the results the temperature stress has especially affected the plant height, branches, canopy diameter and number of fruit weight at 0.01 probability levels. Further temperature stress showed significant effect at 0.05 probability level on transplant success, fruit diameter and number of fruits per plant. According to the yield parameters it was observed that interaction effect of the stresses of temperature and water had higher significant impact on growth and yield of Chilli. Yield reduction of Chilli due to temperature stress can be overcome by providing water at field capacity level of the soil moisture during growing period. DOI: http://dx.doi.org/10.4038/ouslj.v7i0.7306 OUSL Journal Vol.7 2014: 25-42