Key message Differential regulations of C and N metabolism in dwarf bamboo improve the capacity of osmotic adjustment, and also their metabolites may play an important role for protection against membrane lipid peroxidation under drought, thus accelerating recovery after rewatering. Abstract Dwarf bamboo (Fargesia rufa Yi), is a staple food for the endangered giant panda, but little is known about the impact of drought on bamboo species and its recovery mechanism. This study investigated the response of carbon (C) and nitrogen (N) metabolism to drought and subsequent recovery, and the relationship of their metabolites with lipid peroxidation. Photochemistry was reversibly down-regulated after drought, but a longer recovery time is needed. The accelerated degradation of starch due to a rapid increase in amylase activity resulted in higher soluble sugar only in severe drought-stressed plants after 30 days of drought. Sucrose content was not affected by drought because of the relative increases in activities of invertase, sucrose synthase, and sucrose phosphate synthase. As nitrate concentration increased in parallel with nitrate reductase activity, ammonium (NH 4 ? ) production was enhanced by drought. Also, activated glutamine synthetase/glutamate synthase cycle stimulated NH 4? assimilation, while hydrolysis of soluble proteins was accelerated, resulting in accumulation of amino acids. After rewatering, re-balancing of C metabolism has gradually begun, but a stronger N metabolism was still observed. The notable positive correlations between MDA and the contents of starch and proline after 15 days of drought as well as between MDA and the contents of soluble sugar, NSC and proline after 30 days of drought were displayed. We conclude that dwarf bamboo may not only differently regulate its C and N metabolism to improve the capacity of osmotic adjustment but also employ its different metabolites protect against membrane Communicated by M. Adams.