Agricultural activities depend heavily on irrigation in arid and semi-arid climates, which are one of the most water-limited areas, reducing agricultural productivity. As the climate changes, the lack of precipitation is expected to aggravate in these areas, requiring careful management of water use. Subsurface water retention technology (SWRT) may hold promise as a management tool to save water use and improve crop drought resistance. In this context, the effect of SWRT on tomato yield, growth, physiology, and biochemical characteristics, as well as soil characteristics under two regimes of water (100% field capacity (FC) and 50% FC) in open field conditions, was investigated. The results here suggest that drought affected tomato performance. Nevertheless, SWRT application significantly increased tomato yield (38%), chlorophyll fluorescence (3%), gas exchange (39%), and chlorophyll total content (49%), as well as soil fertility characteristics, with significant increases in organic matter (23%) and assimilable phosphorus contents (25%) compared with the control. Furthermore, it resulted in a significant reduction in enzymatic antioxidant activities and polyphenol and significant improvement in fruit quality by increasing protein content. This technique should be used as a valuable strategy to save irrigation water and mitigate the negative effects of water deficiency on tomato plants in arid and semi-arid regions.