Sorghum (Sorghum bicolor L., Moench) and pearl millet (Pennisetum americanum L., Leeke) were intercropped under soil moisture non-stress and stress at Marana, Arizona during summer 1987. Effects of soil moisture stress and inter-row competition between sorghum and pearl millet on grain yield, 50% bloom, plant height, head length, head exsertion, 1000 grain weight, and number of effective tillers were evaluated. Interplot competition significantly reduced grain yield and head exsertion of peal millet. In sorghum, only plant height was significantly different due to competition. Agronomic characters were significantly different due to the effect of soil moisture stress except head length in pearl millet and head length, 1000 seed weight, and number of effective tillers in sorghum. Sorghum growing in a neighbor plot greatly suppressed millet grain yield under soil moisture stress. Relative yield total of the cereals under intercrop was less than unity under soil moisture stress.