The adaptation responses to different water conditions and the drought tolerance of Sophora davidii seedlings were assessed in a greenhouse experiment. Two-month-old seedlings were subjected to the following water supplies for 95 days: 100, 80, 60, 40 and 20% of field water capacity. The seedlings at 100% FC had the greatest productivity, height, basal diameter, branch number, leaf number and leaf area. Water supply\80% FC was the threshold of droughtinitiated negative effects on seedling growth, yield and physiological processes; these parameters were severely reduced at 20% FC, however, there was no plant death during the experiment. Moreover, water stress decreased leaf relative water content, specific leaf area, leaf area ratio, and water-use efficiency (WUE), whereas it increased the biomass allocation to roots, which resulted in a higher root:stem mass ratio under drought. The S. davidii seedlings tolerated drought by maintaining high leaf relative water content and by reducing branching and leaf expansion. However, low productivity and WUE at 20% FC suggested that seedlings did not produce high biomass under severe drought. Therefore, prior to introducing S. davidii in forestation efforts, a water supply [40% FC is recommended for seedlings to maintain growth and productivity. These results provide insights into limitations and opportunities for establishment of S. davidii in arid regions.