Water stress is one of the most critical threats to the growth and productivity of plants and is one of the most studied topics in agricultural sciences. In order to enhance the tolerance of plants to water stress conditions, synthetic fertilizers have been widely used in the field. However, due to their toxic effects, recent reports have focused on organic options. In this study, the effects of liquid vermicompost applications (25, 50, 75, and 100%) on the agronomic attributes, phenolic compounds, and essential oil compounds of basil plants exposed to drought stress conditions were investigated. Accordingly, water stress critically reduced the factors of plant height, plant fresh weight, root fresh weight, leaf length, and leaf diameter. On the other hand, vermicompost applications significantly affected all of the parameters considered, except the leaf length of well-watered basil plants. However, a two-way ANOVA analysis revealed that the interactions of water stress and vermicompost were significant on root length and root fresh weight. Regarding the essential oil compounds, the contents of humulene, anethol, eucalyptol, estragole, bisabolene, germacrene, and caryophyllene were quantified. Estragole was determined as a major component by 85–90%. The results revealed that the highest estragole content was determined in the 25% vermicompost + water stress, water stress, and control groups. Of the major phenolic compounds, caffeic acid decreased as a result of water stress conditions but increased with vermicompost treatments. The rosmarinic acid content increased during water stress conditions, attaining the highest content at 25% via the vermicompost and water stress interaction. In general, the 25% and 50% vermicompost applications increased the content of phenolic compounds in plants under either well-watered or stress conditions.