Stand-level competition and local climate influence tree responses to increased drought at the regional scale. To evaluate stand density and elevation effects on tree carbon and water balances, we monitored seasonal changes in sap-flow density (SFD), gas exchange, xylem water potential, secondary growth, and non-structural carbohydrates (NSCs) in Abies pinsapo. Trees were subjected to experimental thinning within a low-elevation stand (1200 m), and carbon and water balances were compared to control plots at low and high elevation (1700 m). The hydraulic conductivity and the resistance to cavitation were also characterized, showing relatively high values and no significant differences among treatments. Trees growing at higher elevations presented the highest SFD, photosynthetic rates, and secondary growth, mainly because their growing season was extended until summer. Trees growing at low elevation reduced SFD during late spring and summer while SFD and secondary growth were significantly higher in the thinned stands. Declining NSC concentrations in needles, branches, and sapwood suggest drought-induced control of the carbon supply status. Our results might indicate potential altitudinal shifts, as better performance occurs at higher elevations, while thinning may be suitable as adaptive management to mitigate drought effects in endangered Mediterranean trees.Water uptake and carbon metabolism are limited by drought according to the specific sensitivities of physiological processes, like hydraulic failure, carbon starvation, and phloem transport failure, to declining water availability [10][11][12]. Briefly, hydraulic failure appears to usually be related to a high xylem susceptibility to embolism [13][14][15], whereas carbon starvation is related to isohydric stomatal control [16,17]. Phloem transport failure is relative to carbon starvation and seems to be present when the drought-induced limitation of carbohydrate transport to growth exceeds the drought sensitivity of photosynthesis [12,18]. Consequently, the balance between water supply and demand, on the one hand, and sources and sinks of carbohydrates, on the other hand, characterize the inherent species' drought sensitivity and determine how water and carbon relationships affect tree survival [11,14,19]. Indeed, the timing of this sequential reduction, in functions, such as gas exchange and growth, has been largely related to recent events of forest decline and mortality worldwide [11,[16][17][18][19]. Nonetheless, the functional and structural dynamics of these critical processes in response to competition are still not well understood.We focused on the hydraulic characteristics and seasonal patterns of sap flow density (SFD), gas exchange, secondary growth, and non-structural carbohydrate (NSC) of the drought-sensitive fir Abies pinsapo Boiss [20][21][22][23]. We assumed that xylem vulnerability to embolism places a physical limit for A. pinsapo tolerance to water shortage while the dynamics of NSC would be related to drought sensitivity, for the extent o...