The olive tree (Olea europaea L.) is commonly grown in the Mediterranean area, where it is adapted to resist periods characterized by severe drought and high irradiance levels. Photosynthetic efficiency (in terms of Fv/Fm and ΦPSII), photochemical (qP) and nonphotochemical quenching (NPQ) were determined in two-year-old olive plants (cultivars Coratina and Biancolilla) grown under two different light levels (exposed plants, EP, and shaded plants, SP) during a 21-day controlled water deficit. After reaching the maximum level of drought stress, plants were rewatered for 23 days. During the experimental period, measurements of gas exchange and chlorophyll (Chl) fluorescence were carried out to study the photosynthetic performance of olive plants. The synergical effect of drought stress and high irradiance levels caused a reduction of gas exchange and photosynthetic efficiency and these decreases were more marked in EP. EP showed a higher degree of photoinhibition, a higher NPQ and a lower qP if compared to SP. Coratina was more sensitive to high light and drought stress but also showed a slower recovery during rewatering, whereas Biancolilla showed a less marked photosynthesis depression during drought and a considerable resilience during rewatering. The results confirm that photoinhibition due to high light intensity and water deficit can be an important factor that affects photosynthetic productivity in this species. and A. Sofo ... [et al.].