Drought stress is one of the major abiotic stresses in agriculture worldwide. This study was carried out to investigate the effect of drought stress on proline content, chlorophyll content, photosynthesis and transpiration, stomatal conductance and yield characteristics in three varieties of chickpea (drought tolerant Bivaniej and ILC482 and drought sensitive Pirouz). A field experiment with four irrigation regimes was carried out in a randomized complete block design with three replications. Treatments included control (no drought),drought stress imposed during the vegetative phase, drought stress imposed during anthesis and drought stress during the vegetative phase and during anthesis. All physiological parameters were affected by drought stress. Drought stress imposed during vegetative growth or anthesis significantly decreased chlorophyll a, chlorophyll b and total chlorophyll content. Proline accumulation was higher in ‘ILC482’ than in ‘Pirouz’ both under control and drought stress conditions. Photosynthesis, transpiration, stomatal conductance and yield were higher but sub-stomatal CO2 concentration was lower under drought stress conditions than under control conditions. The results showed that mesophyll resistance is the basic determinate of rate of phototosynthesis under drought stress conditions. Under drought conditions the drought tolerant variety ‘Bivaniej’ gave the highest yield whereas the drought sensitive variety ‘Pirouz’ gave the lowest yield. Drought stress at anthesis phase reduced seed yield more severe than that on vegetative stag