Wheat (Triticum aestivum L.) is the most important member of family Poaceae. It is the central agricultural product in global trade and grown up on more than 200 million hectares of the world's refined land. Wheat is widely cultivated in Pakistan as major food crop in moistened and rain fed areas. In Pakistan, the major threat to wheat production is drought. Drought stress badly effect stem elongation, growth rate, stomatal expansion, leaf expansion and cause changes in a biochemical and physiological processes. The existing wheat genotypes are found to be susceptible to drought stress that ultimately low in yield. Therefore, it is cry of the day to produce drought tolerant genotypes for growing population. The present research carried out to screen 40 wheat genotypes for drought stress tolerance. The lowest water loss rate was recorded by genotype Punjab-96 while Nifa-barat-2009 recorded highest relative water content. Thirty four genotypes out of forty were selected for variability in morphological traits. Analysis of variance revealed that all the morphological traits were found to be significant at P ≤ 0.05 levels except glume hairiness. The results showed that yield per plant recorded positive correlation to yield and yield associated traits. For molecular analysis thirty-eight out of forty genotypes of bread wheat (Triticum aestivum L.) were selected. UPGMA tree constructed on the base molecular markers revealed that Nifa-barat-2009 and Punjab-2011 comes under the same clade and also recorded best results in morphological as well as physiological characterization. Therefore the present study confirmed that Nifa-barat-2009 and Punjab-2011 could be considered as best genotypes for drought stress areas and would be recommended for further cultivation in rainfed areas of Pakistan including Azad Jammu and Kashmir.