Drought is currently one of the most severe abiotic factors limiting agricultural production. The high rates of population growth and global warming are expected to further exacerbate the threat of drought, especially in areas with a semi-arid climate as in the Middle East region. Selecting genotypes for improved drought tolerance has long been of interest for those involved in horticulture. The present research investigated the reaction of seven 10-year-old olive genotypes to drought stress in Dallaho Olive Research Station, Iran. To determine the reaction of genotypes to drought stress, physiological and biochemical characteristics, fruit and oil yield, and water use efficiency were measured. The results showed that different genotypes react differently to drought stress while drought decreased vegetative and reproductive traits such as shoot length and diameter, relative water content of the leaves, Ca and K percentage, and fruit yield. Finally, Dd1 and Bn6 showed the highest oil and fruit yield per hectare and the highest water use efficiency. In addition, Bn3 had a favorable status in most of the measured parameters. So, they can be suggested as the genotypes that are tolerant of drought stress. The results also showed that olive yield and irrigation management can be improved by applying proper irrigation levels and using tolerant genotypes.