Various environmental factors affect plant growth, among which sufficient water availability is most crucial for plant survival. The present research work intends to determine the efficacy of acacia wood biochar (AW biochar) supplementation in soil for modification of physio-biochemical and yield attributes of canola genotypes (Hyola-401 and PARC) under sufficient moisture (80% field capacity) and deficit moisture (60% and 50% field capacity) regimes. Acacia wood (AW) biochar was finely crushed and mixed in the soil at a rate of 5% and filled in the pots, and pots were incubated for 60 days at 30 degrees C. Afterward, the experiment was conducted in a completely randomized design, and water stress was imposed at the vegetative and reproductive stages of the canola. Soil analysis indicated that acacia biochar-supplemented (ABS) soil exhibited significantly improved surface area, porosity, organic matter, saturation percentage, nitrogen, and total organic carbon. Plant analysis demonstrated that canola genotypes in ABS soil had increased relative water content, membrane stability index, pigment profile, and photosynthetic attributes under deficit moisture regimes. Low levels of proline, sugar, malondialdehyde, and antioxidant enzyme activities indicated less severity of water stress with AW biochar supplementation. Moreover, morphological, yield attributes, and apparent water productivity were also increased with AW biochar supplementation. The AW biochar supplementation in soil appeared to alleviate water stress in canola genotypes, particularly PARC. The detailed analysis of the physical structure of ABS soil provides an insight into the process of soil-biochar interaction for improvement in its pore volume with enhanced water retention capacity and better plant growth under deficit moisture regimes.