The experiment observed the germination and growth of peanut after treated with nitrate rare earth elements under drought condition. The result showed that the germination rate and its potential, average growth potential and vitality index increased after soaking with proper nitrate rare earth element solution. The period of emergence reduced by one or two days, and the rate of emergence was markedly increased especially. Drought resistance of seedling was significantly enhanced under the condition. It offered a better way for the field production for fostering tidy peanut seedlings. Among the five treatments 500mg/L was the best. The seedlings were stout and stronger, the root developed rapidly. The leave area, amounts of branches, chlorophyll content, proline content and photosynthetic rate were increased, the osmosis of cytoplasm membrane of plants reduced. Enhanced drought resistance and photosynthetic capacity were achieved by application of rare earth elements.