When plants are transferred from nursery to urban environments, they often face drought stress due to inadequate maintenance, such as insufficient irrigation. Using drought tolerant species may help mitigate the adverse impact of drought stress in urban settings. Additionally, utilizing novel technologies for water status monitoring may help optimize irrigation schedules to prevent transplanting failures. This study investigated the physiological and biochemical responses of two ornamental shrubs, Photinia x fraseri and Viburnum tinus, subjected to water stress of increasing severity and rewatering. Water relations, gas exchanges, chlorophyll fluorescence and biochemical analyses were conducted alongside real-time monitoring of water status using leaf-water-meter sensors (LWM).The progression of water stress had a notable negative impact on leaf gas exchanges and water relations in both species. Notably, P. fraseri avoided photoinhibition by reducing chlorophyll content and actual efficiency of PSII. Adjustments in leaf phenolic compounds played a significant role in enhancing drought tolerance of both species due to their antioxidant and photoprotective properties.Upon rewatering, both species exhibited complete recovery in their physiological functions, underscoring their remarkable tolerance and resilience to drought stress. Additionally, LWM sensors efficiently tracked the dehydration levels, exhibiting a rising trend during the water stress progression and a subsequent decline after rewatering for both species. These findings confirm the reliability of LWM sensors in monitoring physiological status of plants in outdoor contexts, making them a suitable tool for use in urban settings.