Trunk water has an important influence on the metabolism and ecological balance of living trees, which affects the vegetation growth and moisture cycle of the whole forest ecosystem. The accurate and real-time measurement of moisture content (MC) is of vital guiding meaning to living tree cultivation and forest management. In this paper, a water content diagnosis system based on a wireless acoustic emission sensor network (WASN) was designed and implemented with the aim of the nondestructive detection of water content in living wood trunks. Firstly, the acoustic emission (AE) signal of the trunk epidermis was sampled at high speed; then, its characteristic parameters were calculated and transmitted wirelessly to the gateway. Furthermore, the optimal characteristic wavelet sequence was decomposed by the adaptive chirp mode decomposition (ACMD), and the improved grey wolf optimizer (IGWO) optimization XGBoost established the MC prediction model, which was improved by the multi-strategy joint optimization. Finally, field monitoring was carried out on Robinia Pseudoacacia, Photinia serrulata, Pinus massoniana and Toona sinensis. The average diagnostic accuracy reached 96.75%, which shows that the diagnosis system has excellent applicability in different working conditions.