Deficit irrigation is a good strategy to increase water use efficiency. For this purpose, two field experiments were conducted during the winter seasons of 2020–2021 and 2021–2022 at Research and Production Station of the National Research Centre, El-Nubaria El-Behera Governorate, Egypt, to evaluate the response of wheat plant to algae extract foliar application (1.5 g/L) under different nitrogen fertilizerrates (80, 60 and 40 kg/faddan) amounting to 100%, 75% and 50% of the recommended rate and water deficit (100% and75% of ETc). Results show that, water deficit (75% of ETc) significantly decreased vegetative growth, yield and its components compared to unstressed plants. On the other hand, fertilizing wheat plants with 75 and 100% of the nitrogen dose significantly enhanced plant growth, yield and its components compared to fertilizing with 50% ofthe recommended nitrogen dose. Furthermore, algae extract treatment significantly increased the previous parameters. As for the third order interaction, results showed that, the highest values of yield components were recorded under 100% ETc and treated with (algae extract) under 100% of the recommended nitrogen dose. Moreover, under drought stress and lower nitrogen levels (60 and 40 kg/faddan), algae extract could alleviate partially the reduced effect of drought stress and lower nitrogen levels on growth and productivity. It could be concluded that foliar spray with 1.5 g/L of algae extract were found to be highly recommendedfor improving wheat growth and productivity under reduced nitrogen fertilizer rates (60 kg/faddan) and water deficit (75% of ETc).