Some leaf characteristics and yield of soybean were investigated under different light interception (25, 65 and 100% of sun light) and irrigation treatments (I1, I2, I3, I4 for irrigation after 60, 90, 120 and 150 mm evaporation from class A pan, respectively) in 2011. The experiment was arranged as split plot based on randomized complete block design in three replicates. Membrane stability index decreased with increasing shading. However, leaf water potential, relative water content and leaf area index under all irrigation treatments increased as light interception decreased. This trend was improved as water availability decreased. Specific leaf weight significantly decreased with increasing shading under I1 and I2, but it was statistically similar for all light interceptions under I3. In contrast, specific leaf weight was increased as shading increased under I4. In general, specific leaf weight decreased with increasing water deficit. Increasing shade stress decreased grain yield per unit area under I1 and I2, but improved grain yield under I3 and I4, which is directly related with changes in leaf water potential, relative water content and leaf area index under these conditions. Therefore, shading can reduce the impact of water stresses on soybean plant performance in the field.