Disease combined with drought poses an important threat to plant survival, often compromising success in the restoration of riparian forests. Thus, understanding how biotic and abiotic stressors may affect plant survival and growth performance can greatly increase the success of ecosystem management strategies. The purpose of this study was to understand how two plant species, often used together in restoration of riparian ecosystems but with different ecological preferences, would respond to infection by each of two Phytophthora species in Mediterranean-climate regions, in the absence or presence of a simulated drought. Saplings of the drought resistant species Frangula californica, and of the riparian species Alnus rhombifolia were each inoculated in a greenhouse experiment with one of two Phytophthora species and exposed to two watering regimes. Saplings were allocated to six treatments, combining three levels of pathogen inoculation (no inoculation, inoculation with Phytophthora cactorum and inoculation with Phytophthora crassamura), and two watering regimes (well-watered and drought). The response of A. rhombifolia and F. californica saplings was assessed through the observation of health metrics and morphological parameters. Results showed that both P. cactorum and P. crassamura are important pathogens of A. rhombifolia and F. californica. As expected, drought conditions were the main cause of decline and mortality in A. rhombifolia saplings, while water availability was a facilitator of P. cactorum infection in F. californica saplings. We observed two seemingly contrasting results in A. rhombifolia saplings: infection by Phytophthora spp. decreased survival in well-watered plants, while the opposite was recorded for saplings under drought conditions whose survival increased in Phytophthora-inoculated treatments. Saplings of F. californica were able to cope with drought conditions, even when infected by Phytophthora species and water availability increased root infection and decreased sapling survival. We conclude that the continued use of F. californica and A. rhombifolia in sites infested by Phytophthora species can be beneficial in restoration, if appropriate management actions are adopted. Such actions include avoiding the planting of F. californica saplings in areas subjected to water accumulation, and ensuring that A. rhombifolia is planted in areas where drought stress is minimal and where Phytophthora species are possibly absent. We also emphasize the importance of ensuring that plant stock used in revegetation projects is not infected by Phytophthora species, and that biotic and abiotic risks are assessed prior to restoration actions.