Deficit irrigation (DI) is an agricultural water management strategy by which crops are exposed to a level of drought stress either during a certain period of time or during the entire growing season. DI in peppers (Capsicum annuum L.) reduces the fresh weight of the harvested fruits. However, the results also proved that DI from flower initiation to fruit harvest lead to better water use efficacy of pepper cultivars, particularly Cv. Marconi Rosso. Further, the results proved that the postharvest quality, importantly the health-benefitting properties of peppers can be enhanced through the water-stress treatment. It leads to more accumulation of sugars as a mechanism to reduce the osmotic potential of the water-stressed plants. Similarly, the phenolic content, reported to have number of health benefitting properties, was also increased in all three cultivars of peppers with the deficit irrigation practice, under glass house condition.