Three-month-old mulberry (Morus alba L.) cultivars (drought tolerant S13 and drought sensitive S54) were subjected to water stress for 15 d. Water stress decreased the leaf water potential, net photosynthetic rate (PN), and stomatal conductance (gs) in both the cultivars. However, the magnitude of decline was comparatively greater in the sensitive cultivar (S54). Intercellular CO2 concentration (Ci) was unaltered during mild stress, but significantly increased at severe stress in both cultivars. The photosystem 2 activity significantly declined only at a severe stress in both cultivars. The Ci/gs ratio representing the mesophyll efficiency was greater in the tolerant cultivar S13. Involvement of stomatal and/or non-stomatal components in declining PN depended on the severity and duration of stress. However, the degree of non-stomatal limitations was relatively less in the drought tolerant cultivar. and S. Ramanjulu, N. Sreenivasulu, C. Sudhakar.