Sustaining crop yield under abiotic stresses with optimized resource use is a prerequisite for sustainable agriculture, especially in arid and semi-arid areas. Water and heat stress are major abiotic stresses impacting crop growth and yield by influencing complex physiological and biochemical processes during the life cycle of crops. In a 2-year (2015–2017) research, spring wheat cv. HD-2967 was grown under deficit irrigation and delayed sowing conditions to impose water and terminal heat stresses, respectively. The data were analyzed for seasonal crop water use, radiation interception, water productivity (WP), and radiation productivity (RP) under combined water deficit and terminal heat stresses. Seasonal crop water use was significantly affected by stresses in the order of water + terminal heat > water > terminal heat. Water stress showed minimal effect on the light extinction coefficient and consequently on seasonal intercepted photosynthetically active radiation (IPAR). However, seasonal IPAR was primarily affected by combined water + terminal heat and terminal heat stress alone. The slope of crop water use and IPAR, i.e., canopy conductance, an indicator of canopy stomatal conductance, was more influenced by water stress than by terminal heat stress. Results showed that linear proportionality between WP and RP is no longer valid under stress conditions, as it follows a curvilinear relation. This is further supported by the fact that independent productivity (either water or radiation) lacked the ability to explain variability in the final economic yield or biomass of wheat. However, the ratio of RP to WP explained the variability in wheat yield/biomass under individual or combined stresses. This suggests a clue for improving higher wheat yield under stress by managing WP and RP. The highest biomass or yield is realized when the ratio of RP to WP approaches unity. Screening of genotypes for traits leading to a higher ratio of RP to WP provides an opportunity for improving wheat productivity under stressed environments.