Soybean [Glycine max (L.) Merr.] is one of the most important grain legume crops in the world. Soybean forms a symbiotic relationship with the nitrogen-fixing rhizobia bacteria that reside in root nodules and fix atmospheric nitrogen. Most of the soybean's nitrogen demand is derived from symbiotic nitrogen fixation (SNF). Drought is becoming a major threat to crop production in the world. Legumes are sensitive to drought stress, and drought can negatively affect SNF, grain yield, and seed protein production. The effect of drought stress on soybean growth, morphological traits, nodulation, water use efficiency, and SNF, particularly during early plant growth, remains poorly characterized. We hypothesized that early-onset drought stress can negatively affect nodulation, plant growth, and SNF in soybean during the vegetative growth stages. To test this hypothesis, a controlled-environment study was conducted using soybean plants grown in pots, where plants were subjected to moderate drought stress (40% field capacity) and well-watered (80% field capacity) from seeding until the flowering stage. Drought stress significantly reduced the nodule number and nodule dry weight, root and shoot biomass, shoot total nitrogen content, shoot carbon to nitrogen ratio, and shoot total fixed nitrogen compared to the well-watered control.Conversely, root-to-shoot ratio and shoot nitrogen concentration were higher under drought stress compared to well-watered conditions. These findings enhance our understanding of adverse impacts of drought in the early growth stage of soybean while suggesting that reduced total nitrogen assimilation during the vegetative phase can lead to less nitrogen reserves available for translocating at the seed filling stages for seed protein production. This information should aid in generating drought-tolerant soybean cultivars.