A field study was performed in the semi-arid Loess Plateau, China, to explore how different tillage methods improve drought tolerance in wheat by examining plant growth, fungal communities, and soil properties. Four tillage methods were applied for wheat cultivation: (1) T (conventional tillage with no straw), (2) NT (no-tillage with no straw cover), (3) TS (conventional tillage with straw incorporated), and (4) NTS (no-till with straw cover) and data were collected in 2020 and 2021. The results showed that NTS treatment remarkably improved soil physicochemical properties during 2020 and 2021, increasing soil water content by 13.7-62.1 % compared to T at 0-50 cm soil depth. The NTS treatment had the lowest soil bulk density and pH and the highest total N, NO3- -N, and available P. Compared to T, NTS treatment significantly increased endophytic fungal Sobs index and genera like Alternaria, Peyronellaea, Sarocladium, and Schizothecium. The NTS and TS treatments significantly increased antioxidant enzymes, including CAT, POD, and soluble protein by 1.26-25.52 % compared to T. NTS treatment significantly increased yield by 23.64 and 24.28 % and water use efficiency by 16.06-19.97 % compared to T in 2020 and 2021, respectively. The endophytic fungal abundance (Sobs and Chao indices), diversity, and composition (Alternaria, Peyronellaea, Sarocladium, and Schizothecium) in wheat roots were positively correlated with the drought tolerance index, with soil water content, total N, and NO3- -N, being considered as key influencing factors. Collectively, NTS treatment showed the highest drought tolerance in wheat crop by improving soil physicochemical properties and utilizing the microbiome potential, ultimately enhanced water use efficiency and crop yields. Our study findings suggest that the NTS treatment is a promising practice for the semi-arid Loess Plateau area and may further guide future research on harnessing the emergent functions of microbial communities to enhance drought tolerance in wheat cultivated in drylands.