Drought is a primary constraint influencing wheat production and quality. This study evaluated 30 wheat genotypes under irrigated and rainfed conditions at the University of Agriculture, Peshawar, Pakistan (2022-23), using a randomized complete block design with three replications. Combined analysis of variance revealed significant (P ≤ 0.01) differences between environments for all traits except grains spike⁻¹ and grain weight spike⁻¹. Significant genetic variation (P ≤ 0.01) was observed among genotypes for most traits, excluding spikes m⁻², grains spike⁻¹, grain weight spike⁻¹, and biological yield. Genotype × environment (G×E) interactions were highly significant (P ≤ 0.01) for all traits except grain weight spike⁻¹ and grain yield. Drought stress reduced mean performance across genotypes for: spikes m⁻² (481 to 378), spike length (12.0 to 10.7 cm), spikelets spike⁻¹ (24 to 20), grains spike⁻¹ (74 to 72), grain weight spike⁻¹ (2.4 to 1.9 g), 1000-grain weight (44 to 39 g), biological yield (8789 to 7320 kg ha⁻¹), grain yield (3705 to 2508 kg ha⁻¹), and harvest index (42 to 35%). Heritability and expected genetic advance for key traits, including grain yield and 1000-grain weight, were higher under irrigated conditions. Grain yield showed a significant positive genotypic (rg) and phenotypic (rp) correlation with plant height in both irrigated (rg=0.687; rp=0.472) and rainfed (rg=0.471; rp=0.347) environments. Superior grain yield was recorded for G-4 (4748 kg ha⁻¹), G-22 (4500 kg ha⁻¹), and G-12 (4389 kg ha⁻¹) under irrigation, and G-10 (3489 kg ha⁻¹), G-22 (3408 kg ha⁻¹), and G-6 (3056 kg ha⁻¹) under rainfed conditions. Based on stress selection indices, genotype G-13 (TOL=111.1, YSI=0.99, SSI=0.09) and G-17 (MP=9111, STI=1.07) were identified as superior for biological yield, while G-22 (MP=3954, STI=1.11) and G-30 (TOL=110.4, YSI=224.3, SSI=0.40) excelled for grain yield stability and tolerance. Selection indices such as TOL, MP, YSI, SSI, and STI proved to be effective indicators for identifying drought-tolerant wheat genotypes.