We studied the responses of leaf water potential ( w ), morphology, biomass accumulation and allocation, and canopy productivity index (CPI) to the combined effects of elevated CO 2 and drought stress in Caragana intermedia seedlings. Seedlings were grown at two CO 2 concentrations (350 and 700 µmol mol −1 ) interacted with three water regimes (60-70%, 45-55%, and 30-40% of field capacity of soil). Elevated CO 2 significantly increased w , decreased specific leaf area (SLA) and leaf area ratio (LAR) of drought-stressed seedlings, and increased tree height, basal diameter, shoot biomass, root biomass as well as total biomass under the all the three water regimes. Growth responses to elevated CO 2 were greater in wellwatered seedlings than in drought-stressed seedlings. CPI was significantly increased by elevated CO 2 , and the increase in CPI became stronger as the level of drought stress increased. There were significant interactions between elevated CO 2 and drought stress on leaf water potential, basal diameter, leaf area, and biomass accumulation. Our results suggest that elevated CO 2 may enhance drought avoidance and improved water relations, thus weakening the effect of drought stress on growth of C. intermedia seedings.