Drought has a deleterious impact on the growth, physiology, and yield of various plants, including soybean. Seaweed extracts are rich in various bioactive compounds, including antioxidants, and can be used as biostimulants for improving yield and alleviating the adverse effect of drought stress. The purpose of this study was to evaluate the effect of soybean growth and yield with different concentrations (0.0%, 5.0%, and 10.0% v/v) of water extracts of the red seaweedGracilaria tenuistipitatavar.liuiunder well-watered (80% of field capacity (FC) and drought (40% of FC)) conditions. Drought stress decreased soybean grain yield by 45.58% compared to well-watered circumstances but increased the water saturation deficit by 37.87%. It also decreased leaf water, chlorophyll content, plant height, and the fresh weight of the leaf, stem, and petiole. Drought stress decreased soybean grain yield by 45.58% compared to well-watered circumstances but increased the water saturation deficit by 37.87%. It also decreased leaf water, chlorophyll content, plant height, and the fresh weight of the leaf, stem, and petiole. Under both drought and well-watered situations, foliar application of seaweed extracts dramatically improved soybean growth and production. Under drought and well-watered situations, 10.0% seaweed extract increased grain yield by 54.87% and 23.97%, respectively in comparison to untreated plants. The results of this study suggest that red seaweed extracts fromGracilaria tenuistipitatavar.liuimay be used as a biostimulant to improve soybean yield and drought tolerance in the presence of insufficient water. However, the actual mechanisms behind these improvements need to be further investigated in field conditions.