Sustainable forest management faces challenges from various biotic and abiotic stresses. The Asian longhorned beetle (ALB) and drought stress both induce water shortages in poplar trees, but require different management strategies. In northwestern China, ALB and drought stress caused massive mortality in poplar shelterbelts, which seriously affected the ecological functions of poplars. Developing a large-scale detection method for discriminating them is crucial for applying targeted management. This study integrated UAV-hyperspectral and LiDAR data to distinguish between ALB and drought stress in poplars of China’s Three-North Shelterbelt. These data were analyzed using a Partial Least Squares-Support Vector Machine (PLS-SVM). The results showed that the LiDAR metric (elev_sqrt_mean_sq) was key in detecting drought, while the hyperspectral band (R970) was key in ALB detection, underscoring the necessity of integrating both sensors. Detection of ALB in poplars improved when the poplars were well watered. The classification accuracy was 94.85% for distinguishing well-watered from water-deficient trees, and 80.81% for detecting ALB damage. Overall classification accuracy was 78.79% when classifying four stress types: healthy, only ALB affected, only drought affected, and combined stress of ALB and drought. The results demonstrate the effectiveness of UAV-hyperspectral and LiDAR data in distinguishing ALB and drought stress in poplar forests, which contribute to apply targeted treatments based on the specific stress in poplars in northwest China.