Water deficit stress largely limits plant growth and survival in natural and managed ecosystems. We studied the morpho-physiological responses of plants associated with distinct strains of Epichloë fungal endophytes to water deficit. We hypothesised that Epichloë symbionts would alleviate the negative effects of water deficit on plants and that both magnitude and mechanisms of endophyte-based alleviation would vary depending on the Epichloë strain. Perennial ryegrass (Lolium perenne) plants from the experimental cultivar GA66 associated with the Epichloë strains AR1, AR5, AR6, and AR37 were subjected to a treatment of sustained water deficit in a pot experiment under controlled growth conditions. We measured plant biomass (shoot and root), water retention, stress-related phytohormones (abscisic acid, jasmonic acid), proline and other water-soluble amino acids, and Epichloë-derived antiherbivore alkaloids. Alleviation of the negative effects of water deficit on plants depended on the Epichloë strain, with AR37 and AR5 providing the greatest protection followed by AR1, while AR6 did not alleviate stress. The AR37-derived water deficit alleviation was associated with enhanced root biomass and plant water retention, and increased concentrations of abscisic acid, proline, and fungal alkaloids. The AR5-derived stress alleviation was associated with enhanced plant water retention and increased proline concentrations, and the AR1-derived alleviation with increased fungal alkaloid concentrations and mycelial biomass. Although AR6 did not alleviate the water deficit, the stress increased Epichloë-derived alkaloid concentrations (and enhanced root biomass) which could provide an advantage for resisting herbivory. Our study highlighted that while Epichloë generally alleviated the effects of water deficit on plants, the mechanisms of stress alleviation varied among associations, and that the host fitness could be increased even in those associations where endophytes did not alleviate direct water deficit stress if herbivores would be present.