Intercropping is an agricultural practice that can improve crop yield due to better availability of resources, including water. There are few studies, however, addressing the physiological mechanisms behind this phenomenon. In this work oilseed rape (Brassica napus L.) and barley (Hordeum vulgare L.) were cultivated either as monocrop (MC) or intercrop (IC) under well-watered (WW) or drought stress (DS) conditions in a growth chamber. After eight weeks DS, the leaf relative water content was higher in the IC compared with the MC plants in both species and the DS-induced senescence of old leaves was considerably postponed in oilseed rape. Intercropped oilseed rape showed elevated levels of leaf photosynthesis rate, superior accumulation of organic osmolytes but higher water loss compared with the MC counterparts under DS conditions. In barley, less transpiration, an increased root : shoot ratio and osmolyte accumulation was observed in the IC compared with MC plants under DS conditions. The water use efficiency was higher in the IC compared to MC barley and the plants yield was higher in the IC than in the MC oilseed rape. Our data showed that intercropping is a reliable practice for cultivation of both species under arid and semi-arid regions or under rainfed conditions.