Corn is one of the most important cereal crops in the world with highest yield potential. Nevertheless, its potential productivity is constrained by the occurrences of drought stress worldwide. Besides, in the era of climate change, frequent occurrences of severe droughts are predicted. The present investigation was carried out at Main Agricultural Research Station, University of Agricultural Sciences, Dharwad in split plot design to study response of twenty-eight new corn inbreds under drought free (well-watered) conditions and drought simulated by withholding irrigation from 40 to 75 DAS to create water stress. Significant differences among the corn inbreds, moisture treatments and interaction between inbreds were observed for morpho-physiological, yield and yield components indicating differential response of corn inbreds. The inbreds CAL 1426–2 (higher RWC, SLW& wax and lower ASI), PDM 4641(higher SLW, proline, & wax, and lower ASI) and GPM 114 (higher proline & wax, and lower ASI) were drought tolerant. These inbreds are having higher production potential (>5.0 t/ha) under moisture stress condition with less per cent reduction (<24.4%) over non-moisture stress condition and hence are putative candidates for developing drought tolerant hybrids suitable for rainfed ecosystem besides using them in population improvement program to combine different drought tolerant mechanisms to evolve highly potent drought tolerant inbreds. The results of the study suggested that proline content, wax content, anthesis silking interval, relative water content can be better surrogate traits to identify drought tolerant inbreds in corn.