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The current study is a sequel study to explore and to examine Foxtail millet (Setaria italica L. Beauv) as a healthy food. The purpose of this study is to evaluate the potency of Foxtail Millet grown under sub optimum condition and possibility of improving its genetic variation by inducing mutation for promoting its development in marginal lands. This paper provides information the tolerance of Setaria to sub optimum water conditions. Setaria seeds genotype of Gambir Manis were treated with Gamma ray with different levels i.e. 0 Gy, 25 Gy, 75 Gy, and 100 Gy and planted in a greenhouse condition. Prior to flowering phase, the plants were subjected to water shortage by reducing watering intervals i.e., every day, once every 2 days, 4 days and 6 days. Randomized Block Design was used in the experiment with four replications. Nutritional quality, crop growth and production were evaluated. The results suggested that nutritional quality of foxtail millet as food is considerably high and healthy. Radiation treatment of 25 Gy, 50 Gy and 75 Gy performed the best plant growth. Reduction in watering intervals up to 6 days did not significantly affect the plant growth. Combination of 25 Gy and watering every 2 day showed an optimum growth and production. It can be concluded that Foxtail millet can be promoted as a healthy and tolerant crop to water shortage. Mutation by gamma ray in particular level seems possible to improve the plant towards drought resistance. [ABSTRACT FROM AUTHOR]