In this research it was hypothesized that Campomanesia xanthocarpa can overcome some level of water deficiency by adjusting physiological parameters and that shading minimizes the water deficit effects while maintaining elevated photosynthetic rates and relative water content of the leaves and makes a resumption of metabolism and growth when the water supply is normalized. The seedlings were submitted to two water regimes (continuous irrigation - CI and intermittent irrigation - II), three shading percentages (0, 30 and 70%) and six evaluation times (Start - T0, 1st Photosynthesis Zero - 1st P0, 1st Recovery - 1st REC, 2nd Photosynthesis Zero - 2nd P0, 2nd Recovery - 2nd REC and END). Plants under water deficit at 0% shading led to a reduction in photosynthetic metabolism, relative water content (RWC), leaf area, number of leaves, and height, especially during the stress periods 1st and 2nd P0. The 30 and 70% shading mitigated the stressful effect of water deficit on C. xanthocarpa seedlings. The results did not confirm the hypothesis that C. xanthocarpa seedlings are intolerant to water deficit since, although sensitive, they presented a potential for recovery of photosynthetic and growth characteristics under all cultivation conditions. It was concluded that that shading minimizes the stressful effects of water deficit.