Drought is one of the most frequent abiotic stresses affecting crop production worldwide. Use of chemical fertilizers resulted in pollution of soil, water and air. There have been adverse effects on the health of human beings and cattle due to the residues of these agrochemicals in food products. For this reason today again considered organic fertilizers. Vermicompost is an organic fertilizer which has a potential influence on plant growth as well as stress tolerance due to its enrichment of humic substances, macro and micronutrients and beneficial microorganisms. Although, olive ( Olea europaea L.) is considered a species adapted to semi-arid climates, it’s productivity is strongly reduced under dry conditions. Thus, a greenhouse experiment was coducted in 2015 to study the effect of vermicompost on morphophysiological characteristics and drought tolerance of olive cuttings cultivar Zard. The experiment was set up as factorial experiment in completely randomized design with two factors, including vermicompost application at four levels (0%, 12.5%, 25% or 50% ) and drought stress at two levels (full irrigation or non-irrigation) and 4 replications. The results showed that drought stress decreased plant height, relative leaf number, relative stem diameter and shoot and root fresh and dry weights, but addition of vermicompost increased vegetative growth parameters significantly compared to plants cultivated in unamended soil. Water stress treatment decreased the content of relative water content, total chlorophyll and carotenoids, root phosphor content and increased ion leakage, ascorbat peroxidase and catalase activity, proline content and leaf and root sodium concentration and application of vermicompost significantly decreased ion leakage and sodium content in roots. Although, all vermicompost levels of 12.5, 25 or 50% continued to be effective in increasing vegetative growth and drought tolerance indexes (root dry and fresh weight, potassium accumulation in root and leaves and root phosphor content), 25% vermicompost treatment was numerically superior to others, increased leaf number, chlorophyll, carotenoids and proline contents and antioxidant enzyme activity and decreased ion leakage from leaves. Keywords: Antioxidants,Water deficit stress, Organic fertilizer, Humic acid