Shallot (Allium ascalonicum L.), the most significant plant in the Alliaceae family, is used extensively worldwide. The three main objectives of this study are to: (i) ascertain how drought stress affect shallot growth and yield, as well as water usage efficiency, (ii) N levels affect shallot growth and yield, as well as water usage efficiency; and (iii) ascertain which combination of N levels and water deficit maximizes shallot crop yields. The shallot experiment employed a completely randomized design (CRD) and a 3 × 3 factorial design with three replications. First factor was 25 % of field capacity (FC1); 50 % of field capacity (FC2) and 75 % field capacity (FC3) is attributed to this factor. The second factor is nitrogen fertilizer, namely N1 = 100 kg N ha–1, N2 = 150 kg N ha–1, and N3 = 200 kg N ha–1. The study’s findings demonstrated that the effects of nitrogen fertilizer and drought stress interacted to affect plant height, leaves number, tiller number, tuber weight, and crop production. water use efficiency (WUE), relative leaf water content (RLWC), and growth rate (CGR). Onion diameter, harvest index, and proline did not exhibit any relationship between nitrogen fertilizer and drought.