In arid zones, light and water are two important factors that limit seedling development. The shade provided by nurse plants can reduce overheating, excessive transpiration, and photoinhibition in protégé seedlings. The difference that a nurse plant microenvironment may provide on the physiological performance of succulent desert seedlings could be tested by measuring plant growth and photosynthesis. Specifically, in this study we measured the variables related to chlorophyll fluorescence: Quantum yield of photosystem II photochemistry (ΦPSII) and electron transport rate (ETR), as well as relative growth rate (RGR) and its components (net assimilation rate, NAR, and leaf area rate, LAR), root to shoot (R/S) ratio, and relative water content (RWC) for seedlings transplanted under nurse plants and seedlings transplanted under direct sunlight. We tested whether ΦPSII, ETR, LAR, R/S ratio, and RWC, were lower, and RGR and NAR were higher for seedlings of seven succulent species common to the Southern Chihuahuan Desert (Agave lechuguilla, A. salmiana, Echinocactus platyacanthus, Ferocactus histrix, Myrtillocactus geometrizans, Stenocactus coptonogonus and Yucca filifera) grown under direct sunlight than for those grown under nurse Mesquite trees. Although species responded differently to treatments, in general we found that seedlings grown under nurse plants had higher ΦPSII and lower ETR than those grown under direct sunlight. RWC, R/S ratio, and RGR and its components varied in response to microenvironments for some species but not consistently. The ecophysiology variables tested here were more clearly affected by solar radiation than the morphology variables. These results are the first field study including the ecophysiological and morphological mechanisms of seedlings of succulent species under nurse plants.