The paper presents the impact of periodic soil drought on physiological parameters important for bioproductivity of mountain beech populations. The investigated forest population was located near Fruška gora mountain peak, where water runs off quickly, and consequently lack of soil humidity develops very often. Decreasing trends of photosynthesis, transpiration, water use efficiency and stomatal conductance (gs) during the growing season were evident, in correlation with a shortage of precipitation. Diurnally, photosynthesis of beech leaves showed rhythmical changes. It was the most intensive in the morning, then decreased between noon and 1 pm, and increased again during early afternoon. High leaf temperature and water deficit in the deeper soil layers caused a decreasing trend in photosynthesis and daily rhythmic changes of the transpiration rate and water use efficiency. Although surface soil water capacity did not show a significant decreasing trend from July to September, a lack of precipitation was observed, which probably caused a lack of moisture in deeper soil layers, resulting in a decline in photosynthesis and transpiration. Physiological status, linked to primary photosynthetic productivity of forests, could be a significant indicator of environmental conditions and trends in climate changes.