Earth’s forests are increasingly exposed to climate risks through climate change-related drought and heat waves. Here, we review the climate vulnerability of European beech (Fagus sylvatica), the most abundant tree species of Central Europe’s temperate forests, and its adaptation potential to a hotter and drier climate in northern Germany, close to the center of the species’ distribution range. About two-thirds of the studied beech forests show persistent negative growth trends of their dominant trees since the onset of rapid warming in the early 1980s, driven primarily by long-term deterioration of the climatic water balance (CWB) in summer and, locally, long-term decrease in June precipitation. Lower water storage capacity of the soil increases the climate sensitivity of growth. Even though beech populations of drier sub-regions reveal some acclimation to drought (reduced stomatal conductance, turgor loss point reduction, higher C allocation to roots), they are more climate-vulnerable than populations at moister sites, visible in larger growth decreases and greater CWB sensitivity of growth. Even though beech mortality is still lower in the study region than in other parts of Central Europe, our results identify beech forest regions with <350 mm growing-season precipitation as vulnerable to recent climate conditions, which refers to half of the study region. With further climate warming and aridification, most of northern Germany likely will become unfavorable for beech growth within the next tree generation, which suggests choosing in many production forests alternative, more drought- and heat-resistant timber species.