The impact of biochar and chitosan on barley plants under drought stress conditions was investigated during two field experiments. Our results confirmed that drought stress negatively affected morphological and physiological growth traits of barley plants such as plant height, number of leaves, chlorophyll concentrations, and relative water content. However, electrolyte leakage (EL%), lipid peroxidation (MDA), soluble sugars, sucrose and starch contents significantly increased as a response to drought stress. Additionally, 1000 grain weight, grains yield ha−1 and biological yield significantly decreased in stressed barley plants, also anatomical traits such as upper epidermis, lower epidermis, lamina, and mesophyll tissue thickness as well as vascular bundle diameter of flag leaves significantly decreased compared with control. The use of biochar and chitosan led to significant increases in plant height, number of leaves, and chlorophyll concentrations as well as relative water content; nevertheless these treatments led to significant decreases in electrolyte leakage (EL%) and lipid peroxidation (MDA) in the stressed plants. Moreover, anatomical and yield characters of stressed barley plants were improved with application of biochar and chitosan. The results proved the significance of biochar and chitosan in alleviating the damaging impacts of drought on barley plants.