Heat stress is a great challenge for feedlot operations established in arid zones. The aim of this study was to evaluate if increasing shade area in the pen improved physiological and productive variables in feedlot heifers under hot climate. A total of 510 European and Zebu heifers were randomly assigned to six pens which were divided in two treatments: (1) three pens with 100 heifers each with a shade area of 2.7 m2/head (control group [C]); and (2) three pens with 70 heifers each with a shade area of 3.7 m2/head (treated group [T]). Physiological variables respiratory frequency (RF) and body surface temperature (BST) of several anatomic regions were taken from 30 heifers per treatment (i.e., 10 heifers/pen). Feed intake on pen basis was recorded weekly and heifers were individually weighted on days 1, 26, and 66 of the study to calculate performance variables. Relative humidity (RH) and ambient temperature (AT) were recorded and used to estimate the temperature-humidity index (THI). Data was analyzed with analysis of variance. The average THI during the study was 81.7 units, which was categorized as dangerous heat stress. In both shaded areas, European heifers showed higher (P < 0.05) RF than Zebu heifers. In the afternoon, the temperature of head, neck, loin, paddle, and belly was higher (P < 0.05) in C compared with T. Heifers under T showed better (P < 0.05) daily weight gain (DWG), total weight gain (TWG), feed conversion (FC), and feed efficiency (FE) than heifers in C, with no effect on dry matter intake (DMI). Results indicate that during hot summer months, Zebu showed more tolerance to heat stress than European heifers; however, heifers under a shade area of 3.7 m2/head had better productive performance than those under a shade area of 2.7 m2/head during the finishing phase of the feedlot. Increasing the shade area in the finishing phase of beef cattle on feedlot improved some physiological and productive responses during heat stress.