Drought stress is an important challenge to global food security and agricultural output, and dramatic and rapid climate change has made the problem worse, causing unexpected impacts on the growth, development, and yield of different plants. Understanding the biochemical, ecological, and physiological reactions to these pressures is essential for improved management. Carbon materials’ impacts on plants subjected to different stresses are still poorly studied. Thus, this study was carried out investigate the feasibility of applying carbon nanotubes (CNTs) (0, 20, and 40 mg/L) as a foliar treatment for mitigating the effect of water stress (100%, 75%, and 50% irrigation water, IW) on peanut plants growing in sandy soil through assessments of growth and productivity and some physiological and biochemical measurements. Exposure of peanuts to decreased irrigation water led to significant decreases in growth, yield, photosynthetic pigments, indole acetic acid (IAA), and some nutritional components in peanut seeds, but increased levels of osmolytes such as total soluble carbohydrates (TSS) and proline, in addition to free amino acids and phenolics. However, foliar spraying with CNTs could ameliorate the impacts of decreased irrigation water on growth and production via enhancing the studied physiological parameters, such as photosynthetic pigments, IAA, osmolytes, and phenolics. Furthermore, the application of carbon nanotubes improved the nutrient contents, as expressed by the oil yield, protein yield, total carbohydrates, antioxidant activities (DPPH), B-carotene, lycopene, and flavonoids in peanut seeds, either under normal or water stress conditions. The higher level of CNTs (40 mg/L) was more effective than the lower one (20 mg/L) at increasing the above-mentioned parameters. In conclusion, foliar treatment with carbon nanotubes has the ability to enhance peanut drought tolerance and increase its growth and productivity under sandy soil conditions.