The month old seedlings of Abies pindrow were subjected to three water stresses (-0.04, -0.4, and -0.8 MPa) created by the addition of osmoticum (Polyethylene glycol 6000) to nutrient solution under three levels of light (50, 125 and 250µmol m-2 s-1) in the phytotron. Compared to the control seedlings, growth in terms of net photosynthesis, was significantly reduced (57 percent) for seedlings subjected to High light and the severest water stress. The light use efficiency of seedlings was greatest under Low light and moderate and severe water stresses. The results indicated that after two weeks transpiration and stomatal conductance were significantly reduced by High light and high water stress treatment; while the needle water potential of -2.0 MPa under these conditions did not result in complete stomatal closure.