Nepeta, belonging to Lamiaceae family, includes 250 species in the world and 67 species in Iran, 39 of which are native to Iran. In order to investigate the effects of drought stress on yield quantity and quality of Nepeta racemosa Lam., this experiment was conducted in 2011, at the Alborz Research Station, Karaj, Iran. Drought levels were 100% (control), 80% (low stress), 60% (medium stress), and 40% (severe stress) field capacity (FC). Different traits including plant height, number of tillers, number of lateral branches, root weight, root length, main stem diameter, number of inflourcences, inflorescence length, leaf length, leaf width, yield of leaf, inflorescences, stem and shoot, and essential oil percentage and yield of leaf, inflorescence, stem and shoot were measured at flowering stage. Variance analysis revealed significant effect of drought stress on plant height, root weight, inflorescence length, leaf length, leaf width, yield of leaf, stem, inflorescence, and essential oil percentage of leaf, stem, inflorescence, and essential oil yield of the leaf, stem, inflorescence (P£0.01), root length, and main stem diameter (P£0.05). Mean comparison showed that the highest essential oil percentage was observed in leaves (1.72%), shoot (1.27%) and inflorescences (1.93%) at medium stress (60% field capacity). It could be concluded that Nepeta is a drought tolerant plant, and the maximum essential oil percentage could be achieved under medium stress with 60% field capacity.