We used 11 years of census data from 450 seedling quadrats established in a 20-ha forest dynamics plot to study seedling dynamics in tree species of a tropical seasonal rainforest in Xishuangbanna, southwestern China. We found that overall seedling recruitment rate and relative growth rate were higher in the rainy season than in the dry season. Both the recruitment rate of seedlings from canopy tree species (two species) and the relative growth rate of seedlings from understory species (nine species) were higher in the rainy season than in the dry season. However, in the rainy season, the recruitment rate of seedlings was higher for canopy tree species than for understory tree species. In addition, relative growth rate of seedlings was higher in the canopy species than in understory seedlings in the dry season. We also observed that, in both rainy and dry seasons, mortality rate of seedlings was higher for canopy species than for understory species. Overall, canopy tree species appear to have evolved a flexible strategy to adapt to the seasonal changes of a monsoon climate. In contrast, understory tree species seem to have adopted a conservative strategy. Specifically, these species mainly release seedlings in the rainy season and maintain relatively stable populations with a lower mortality rate and recruitment rate in both dry and rainy seasons. Our study suggests that canopy and understory seedling populations growing in forest understory may respond to future climate change scenarios with distinct regeneration strategies.