Shade treatment was applied to tall fescue with 30% full light. The results showed that shade increased chlorophyll (Chl) content per unit leaf mass, decreased the Chl a/b ratio in the mature leaves, and decreased effective quantum yield based on Chl fluorescence compared to the full light treatment. Shade stress did not cause increased contents of malondiadehyde at the early stages of leaf development. However, normalized vegetation indices were able to detect shade stress. Chloroplasts in the shaded leaves are arranged tightly against the periclinal cell wall and are in a spindle shape. There were no differences in the number of grana per chloroplast or grana size (thylakoids per granum) between shade and full light treatment. In conclusion, tall fescue leaves showed unique ultrastructure changes. Turfgrass managers could use vegetation indices developed from the leaf light reflection spectrum as an effective tool to assess shade stress levels and make management decisions.