The major climate-related hazard to worldwide agricultural productivity is drought, which is becoming more common because of ongoing climate change, especially in the arid and semi-arid regions. Herein, we investigated the influence of biochar soil application at 0, (B1), 7.5 ha−1 (B2), and 15 t ha−1 (B3) on the productivity and drought-tolerance indices of wheat (Triticum aestivum L., cv. Sakha 93) grown in sandy soil under irrigation levels of 100 (I1), 80 (I2), and 60% (I3) of crop evapotranspiration (ETc), as well as soil properties based on non-weighing lysimeter units. Increasing water deficiency significantly decreased the actual evapotranspiration (ETa) values. A growing biochar rate caused a significant increase in ETa values, water use efficiency, and wheat productivity compared to the untreated control. Additionally, biochar supplementation revealed an improvement in soil quality as measured by the reduction in the bulk density and hydraulic conductivity with an increase in the total porosity and void ratio of the experimental soil. The correlation analysis exhibited a highly significant and positive correlation (0.98 **) between biological yield and grain yield traits. Therefore, it may be stated that these traits are the most significant components of the evaluated grain yield in wheat plants. The productivity of I1 plants was not significantly different and slightly higher than that of I2 plants. Therefore, it can be recommended that exposed wheat plants cultivated in sandy soil with I2 × B3 treatment significantly provide the highest yield while saving 20% of the irrigation water.