Drought is a major environmental factor limiting plant growth through a variety of physiological and metabolic mechanisms. When subjected to drought, plant usually reduce stomatal aperture to minimize water loss, which consequently causes a reduction in net CO2 assimilation due to a decrease of intercellular CO2 concentration. Moreover, during drought when CO2 assimilation decrease, and under excessive light, the plant may be subjected to photoinhibition, unless the plant can dissipate excess energy from photosynthetic electron transport through heat dissipation, biochemical processes such as photorespiration or scavenging mechanisms to avoid photosynthetic apparatus damage. Although there is evidence that stomatal closure is the main cause of photosynthesis reduction during drought, some results have also indicated a decrease in photochemical activity due to desiccation. As a result of the reduction in photosynthesis, drought dramatically reduces plant growth and yield and when it occurs for long periods can even cause plant death. The controversy about stomatal and non-stomatal limitation of photosynthesis by drought is also discussed.