The objective of this study was to evaluate the effect of hydric deficiency on growth of sugarcane varieties and implications of Meloidogyne incognita parasitism on plant growth. Sugarcane seedlings were inoculated with 30,000 eggs of M. incognita and five days after inoculation, treatments were differentiated in completely randomized design in a 3 (sugarcane varieties RB72454, RB867515 and RB92579) × 2 (hydric treatment 100% and 40% CP) × 2 (inoculum level with and without nematode) factorial arrangement. Evaluations were carried out 42 days after differentiation (DAD). Hydric suppress, besides influence number of leaves and plant height, also affected stalk diameter. At 40% CP, all varieties had decreased development decreasing root dry matter production, independently of nematode presence. There was no difference on biomass allocation to shoots in parasited and no parasited plants at 100% CP. However, at 40% CP parasited plants decreased 4.86% biomass allocation to shoots. Reproduction of M. incognita was significantly higher at 100% CP. Inoculated plants had lower development for both water treatments when compared to non-inoculated ones.