In the present study, wild Arthraxon hispidus, a plant with potential uses in sloped lawn development, was used as the test material and was subjected to 20 factorial treatments with five shade gradients (0, 10%, 30%, 50%, and 70%) and four drought gradients (enough moisture (W0), mild drought (W1), moderate drought (W2), and severe drought (W3)). After a 36 day treatment, the following indices were determined:(1) photosynthetic parameters, including photosynthetic rate (Pn), transpiration rate (Tr), intercellular CO₂ concentration (Ci), and porosity (Gs); (2) antioxidant enzyme system parameters including superoxide dismutase (SOD), peroxidase (POD), and catalase (CAT); (3) parameters associated with metabolism, including soluble sugar (SS), acetic acid (PA), and nitrate reductase (NR) activity; and (4) parameters associated with cell membrane damage, including malondialdehyde (MDA), proline (Pro), soluble protein (SP), and hydrogen peroxide (H₂O₂). The objective of the study was to analyze the synergistic effects of shade and drought on the physiology, biochemistry, and resistance system of A. hispidus. The results showed that shade, drought, and their interaction had a significant effect on photosynthetic physiology (P < 0.05). Shade was the main factor affecting Pn, whereas drought was the main factor affecting Gs, Ci, and Tr. Shade gradients of 30% or less alleviated the extent of reduction of Pn, Tr, Ci, and Gs caused by drought. The synergistic effect of shade and drought on the photosynthetic parameters decreased in the order Tr > Ci > Pn > Gs. Shade, drought, and their interaction also had a significant effect on SS, PA, and NR (P < 0.05). Drought was the main factor affecting metabolism, followed by the interaction and shade alone. The SS and PA content decreased and increased, respectively, with increasing shade gradient, whereas they both increased with the increasing degree of drought. NR activity was the most affected by drought and shade stress. Their synergistic effects on the parameters associated with metabolism decreased in the order PA > NR > SS. Shade, drought, and their interaction also had a significant effect on the antioxidant enzyme system (P < 0.05). With an increasing degree of shade or drought, the resistance index first significantly increased, and then significantly decreased. Drought was the main factor affecting the resistance index, followed by shade and their interaction. Shade gradients in the range 10%-30% increased the resistance index under moderate drought and increased SOD and POD activity under severe drought. The synergistic effect of shade and drought on the antioxidant enzymes decreased in the order CAT > SOD > POD. Shade, drought, and their interaction also had a significant effect on the membrane damage indices (P < 0.05). Drought had a greater effect on H₂O₂, Pro, and SP than did shade, whereas shade had a greater effect on MDA than did drought. Shade and drought had no synergistic effect on SP, a significant synergistic effect on Pro (P < 0.05), and a highly significant synergistic effect on H₂O₂ and MDA (P < 0.01). Thus, synergistic effects of shade and drought improved the photosynthetic capacity, metabolic rate, and resistance potential of A. hispidus, which may increase the ecological adaptability of A. hispidus.