Pasture brome (Bromus valdivianus Phil.) has the potential to increase current levels of herbage production and pasture persistence in New Zealand dryland, well-drained soils. However, there is little literature on the effect of defoliation management on growth of this grass under contrasting soil-water restriction levels. The growth physiology and performance of pasture brome were evaluated in pots in a glasshouse. Defoliation frequency (DF) treatments were applied based on three different accumulated growing degree-days (AGDD): 250, 500 and 1000 AGDD (high, medium, and low DF). At end of the first growing cycle (1000 AGDD), water availability was restricted to 20–25% of field capacity (FC) in half of the pots, while the other pots were maintained between 80–85% FC. Total accumulated herbage mass was positively related with the low DF and well-watered conditions (p < 0.05). At the final harvest, plants subjected to low DF had greater root mass than high and medium DF (p < 0.05). At each harvest, the leaf regrowth stage (LS) for low DF was 3.5, while for high and medium DF, the LS was 1.5 and 2.0; respectively. Tiller water-soluble carbohydrates were highest at the low DF and under 20–25% FC. Regardless of soil-water conditions, defoliation at 3.5 LS supports production, enhancing survival during a drought.