The role of arbuscular mycorrhizal fungus (AMF, Glomus versiforme) in amelioration of drought-induced effects on growth and physio-biochemical attributes in maize (Zea mays L.) was studied. Maize plants were exposed to two drought regimes, i.e., moderate drought (MD) and severe drought (SD), with and without AMF inoculation. Drought at both levels reduced plant height, and chlorophyll and carotenoid content, thereby impeding photosynthesis. In addition, drought stress enhanced the generation of toxic reactive oxygen species (ROS), including H2O2, resulting in membrane damage reflected as increased electrolyte leakage and lipid peroxidation. Such negative effects were much more apparent under SD conditions that those of MD and the control, however, AMF inoculation significantly ameliorated the deleterious effects of drought-induced oxidative damage. Under control conditions, inoculation of AMF increased growth and photosynthesis by significantly improving chlorophyll content, mineral uptake and assimilation. AMF inoculation increased the content of compatible solutes, such as proline, sugars and free amino acids, assisting in maintaining the relative water content. Up-regulation of the antioxidant system was obvious in AMF-inoculated plants, thereby mediating quick alleviation of oxidative effects of drought through elimination of ROS. In addition, AMF mediated up-regulation of the antioxidant system contributed to maintenance of redox homeostasis, leading to protection of major metabolic pathways, including photosynthesis, as observed in the present study. Total phenols increased due to AMF inoculation under both MD and SD conditions. The present study advocates the beneficial role of G. versiforme inoculation in maize against drought stress.