The MethioninesulfoxidereductaseB2(MsrB2) gene catalyzes the reduction of free and protein-bound methionine sulfoxide to methionine and is known to provide tolerance to biotic and abiotic environmental stresses. There have yet to be any reports that MsrB2 enhances drought tolerance. Two drought-tolerant transgenic rice lines, L-8 (single copy) and L-23 (two copy), expressing the Capsicum annuum MsrB2 (CaMsrB2) gene were selected for stress tolerance phenotyping under drought stress conditions. CaMsrB2 enhanced relative water content (RWC), maintained substantial quantum yield (Fv/Fm ratio), and subsequently improved photosynthetic pigments. Interestingly, L-23, carrying two-copy T-DNA insertion, showed greater drought tolerance through more effective stomatal regulation, carotenoid concentration, and osmotic potential than the wild type. High-tech infrared technology (FLIR SC620) was used for the selection of stress-tolerant physiotypes. Later, the IR results were correlated with other tested physiological parameters. The IR images, average plant temperature, and physiological parameters of the treated plants were discussed in detail.