The effect of soil amendment with hydrogel on reducing water stress was tested for Siberian elm (Ulmus pumila) and silver maple (Acer saccharinum) saplings. The trees were planted in soils with one of two concentrations of hydrogel (0.5% or 1% dry weight) as compared to the control soil (0% of hydrogel) and watered either daily, weekly, or bi-weekly. Growth was monitored by measuring height and stem diameter. Stress was monitored by measuring SPAD readings and normalized difference vegetation index (NDVI), as proxy measures of chlorophyll content and photosynthetic activity, respectively. Water stress decreased NDVI (p < 0.05) but did not have a significant effect on SPAD readings. Soil with 0.5% concentration of hydrogel was positively associated with greater height and NDVI (p < 0.01) for both maple and elm trees. Hydrogels had a species-specific effect on SPAD readings. The interaction between hydrogel concentration and the watering regime had a significant effect on the height and NDVI (p < 0.01) of elms, but not maples. The improved performance of water-stressed tree saplings in hydrogel-amended soils was presumably due to the ability of hydrogels to absorb and then gradually release water and nutrients. This is of special interest for urban foresters, because water stress and nutrient deficiency are two important growthlimiting factors for street trees.