Drought is the major abiotic constraint affecting sugarcane productivity and quality worldwide. This obstacle may be alleviated through sugarcane genotypes demonstrating good water use efficiency (WUE) performance. This study aims to investigate the WUE characteristics of various sugarcane genotypes under different soil water availability levels. Plant and ratoon field experiments were conducted using a split-plot randomized complete block design with three replications. The main plots were assigned three types of irrigation: (1) rainfed conditions (RF), (2) field capacity conditions (FC), and (3) half-available water (½ AW). The subplots consisted of six sugarcane genotypes with varying levels of drought resistance, i.e., KK3, UT13, Kps01-12, KKU99-03, KKU99-02, and UT12. Data on yield, stalk numbers, stalk diameter, height, and WUE were collected throughout the crop cycle for both plant and ratoon crops. For the plant crop, the net photosynthesis rate, transpiration rate, stomatal conductance, and leaf area index (LAI) were recorded during the crop period. In both plant and ratoon crops, the WUE in the RF treatment was lower than in the FC and ½ AW treatments during the drought stress period 4 months after planting (MAP). In the recovery phase, the WUE in the ½ AW treatment fell between the FC and RF treatments. The RF treatment exhibited the lowest WUE compared to the other two water regime treatments at the maturity stage. The drought-resistant genotypes KK3 and UT13 maintained high WUE values throughout both the drought and recovery periods and exhibited outstanding LAIs at 4 and 6 MAP. A significant relationship existed between WUE and LAI during these periods. Moreover, WUE was positively correlated with cane yields and yield components, such as stalk weight, shoot diameter, and height, during recovery and tiller number and height during ripening. Therefore, WUE and LAI are efficient parameters for supporting and maintaining growth and yield during water deficit and recovery phases under rainfed conditions.