Abstract The influence of cassava Manihot esculenta Crantz grown under condition of water‐stress on development and reproduction of the cassava mealybug, Phenacoccus herreni Cox & Williams, and levels of parasitism of three encyrtid parasitoids, Apoanagyrus diversicornis Howard, Aenasius vexans Kerrich, and Acerophagus coccois Smith, were studied in the laboratory. Two cassava cultivars were used: CM 507‐37 (drought‐tolerant) and CMC 40. A 30 day period of water stress, imposed by reducing the irrigation volume, led to a reduction in shoot development and stomatal conductance of leaves of both cassava genotypes. Phenacoccus herreni development and reproduction were favoured by cassava under water shortage. Parasitism decreased and water stress appeared to enhance the encapsulation of parasitoid eggs or larvae by the mealybug. In the case of the parasitoid A. diversicornis , there was a decrease in size of female progeny, suggesting a lower fitness in this species on cassava plants under water stress. All results indicated that cassava grown under low water availability favoured P. herreni development and reproduction, and affected the success of parasitism and, depending on the species, parasitoid development. The drought‐tolerance characteristic of cassava genotypes and parasitoid species most suitable for controlling P. herreni in drought‐stricken areas are discussed.