The effective use of rainwater is a key issue in agricultural development in arid and semi-arid regions. The tillage system as an important soil management measure can affect the rainwater retention, soil moisture content, and in consequence crop yield in rainfed lands. This study was conducted to evaluate the effects of slope gradient and tillage direction on rainwater use efficiency (RWUE) in rainfed lands in Zanjan Province. The field experiment was performed in five slope gradients (12.6, 15.3, 17, 19.4, and 22%) and two tillage directions (along slope and on contour tillage) at two replications. Mass soil water content was determined at 5-day intervals and runoff was measured after rainfalls. Wheat grain yield was determined for each plot and RWUE was computed using the proportion of wheat grain yield and precipitation. Base on the results, runoff, soil moisture, wheat grain yield, and RWUE were affected by tillage directions, so that runoff in contour line tillage decreased about 6.4 times compared to along slope tillage and in consequence increased soil moisture, wheat grain yield, and RWUE about 8.7, 24.8, and 24.8%, respectively. Increasing runoff production in contour line tillage at steeper slopes was associated with a lower capacity of cultivated furrows that strongly declined soil water retention and negatively affected wheat grain yield and RWUE in the lands. This study revealed that the efficiency of the contour tillage in water retention and RWUE decreases in steeper slopes in rainfed lands.