Arboreal epiphytes, plants that grow on trees, can significantly increase rainwater storage and evaporation (i.e., “interception”) within canopies. Drought conditions may affect this hydrological role, as epiphytes' physiological responses change leaf properties that affect water retention. Drought-induced changes in epiphyte water storage capacity could substantially alter canopy hydrology, but have not been studied. We tested the effects of drought on the water storage capacity (Smax) of leaves and leaf properties of two epiphytes with distinct ecohydrological traits: resurrection fern (Pleopeltis polypodioides), and Spanish moss (Tillandsia usneoides). Both species are common in maritime forests of the Southeastern USA, where climate change is expected to decrease precipitation in spring and summer. To simulate drought, we dried leaves to 75 %, 50 %, and ~25 % of fresh weight, and quantified their Smax in fog chambers. We measured relevant leaf properties: hydrophobicity, minimum leaf conductance (gmin; a measure of water loss under drought), and Normalized Difference Vegetative Index (NDVI). We found that drought significantly reduced Smax and increased leaf hydrophobicity for both species, indicating that lower Smax may be due to shedding of droplets. While the overall reduction in Smax did not differ between the two species, they exhibited distinct drought responses. Dehydrated T. usneoides leaves had lower gmin, demonstrating the ability to limit water loss under drought. P. polypodioides increased gmin when dehydrated, consistent with its extraordinary ability to withstand water loss. NDVI decreased with dehydration in T. usneoides but not P. polypodioides. Our results suggest that increased drought may have a dramatic effect on canopy water cycling by reducing the Smax of epiphytes. Reduced rainfall interception and storage in forest canopies could have widespread effects on hydrological cycling, thus understanding the potential feedbacks of plant drought response on hydrology is crucial. This study highlights the importance of connecting foliar-scale plant response with broader hydrological processes.