Drought, and rising water and pumping costs dictate that continued production of corn (Zea mays L.) will be limited in future years if effective water conservation strategies are not established. This study was conducted to evaluate the effect of irrigation regimes in conjunction with surfactant treatments on field corn grain yield (GY), total dry matter (TDM) production, and irrigation water use efficiencies (IWUE) based on GY and TDM in a distinct Mediterranean climate, at Spadra Ranch in Pomona, CA, for 2 yr (2008 and 2009). The field experiment was set up in a split plot design with four replications where irrigation regimes (I40: 40%, I60: 60%, I80: 80%, and I100: 100% of the estimated evapotranspiration) was the main plot and application of surfactant (water treated with surfactant and no surfactant application) was assigned to the subplot. The results showed a stepwise reduction in TDM and GY in treatments both with and without surfactant as water deficit increased. However, surfactant application at any irrigation level resulted in higher GY and TDM compared to no‐surfactant treatments. Irrigation water use efficiency based on TDM and GY was the highest in I40 and the lowest in full irrigation (I100) conditions. By application of surfactant in irrigation water, both IWUE and GY increased. Surfactant application increased irrigation costs by 4.7%; however, it increased profit by 19.75%. Economic evaluation showed that the grain yield increment could compensate surfactant price and consequently the same profit achieved with applying 40% less water plus surfactant compared with 100% crop evapotranspiration with no surfactant application. In a Mediterranean climate and under limited irrigation conditions, corn could be cultivated with acceptable yields by application of surfactant.