A field investigation was conducted to study the effects of intercropping Morus aIba and Setaria italica on their dry matter production, land use efficiency, and diurnal variation of leaf photosynthesis. Under intercropping, the plant height, basal diameter, root length, and branch number of M. alba increased by 6.0%, 13.7%, 6.8%, and 14.8%, respectively, and the leaf yield of M. alba was increased by 31.3%, as compared with monoculture M. alba. In contrast, the plant height and root length of intercropped S. italica had no significant difference with those of monoculture S. italica. Intercropping enhanced the equivalent ratio and use efficiency of arable land. For both M. alba and S. italica in monoculture or intercropping, their leaf photosynthetic depression all occurred at midday (12 :00), but the leaf photosynthetic depression of monoculture M. alba was heavier than that of intercropped M. alba. Intercropping promoted the leaf stomatal conductance (g(s)) and water use efficiency (WUE) of M. alba at midday, increased the photosynthetic carbon assimilation of M. alba, and inhibited the decline of M. alba leaf actual photochemical efficiency of PS II (phi(PS II)), photosynthetic electron transport rate (ETR), and the maximal photochemical of PS II (F(v)/F(m)) , which might contribute to alleviate the leaf photosynthetic depression of M. alba at midday. It was concluded that M. alba and S. italica intercropping could obviously improve the leaf photosynthetic capacity of M. alba.