Abstract: A field experiment was conducted from 1993/94 to 1998/99 in Sindhudurg, Maharashtra, India to evaluate the effect of water stress on the growth and yield of Tenera oil palm [Elaeis guineensis]. Intermittent water stress (rainfed) reduced fresh fruit bunches yield by 88.46% compared with the non-stressed treatment (irrigated). Leaf production was reduced by 30% in the early growth phase and by 12.5% in the later growth phase due to water stress. Stem growth was reduced by 49.1% due to water stress. Production of male inflorescences was least affected, but female inflorescences were reduced by 86% under intermittent water stress. This resulted in more than 91% reduction in the number of fresh fruit bunches and ultimately caused 88.46% reduction in fresh fruit bunches yield.