With a warming climate and greater evaporative demand, many forest ecosystems are increasingly affected by water limitation as prolonged water deficits reduce tree-level growth and survival. Water deficit can be monitored in several ways, including from daily measurements of sap flow or changes in stem radius from automated sensors mounted on individual trees. As an alternative approach, we evaluated the use of airborne thermal imagery from unmanned aerial vehicles as a rapid, scalable tool for assessing tree-level water stress. Plant water stress leads to higher leaf temperatures when soil moisture is low and evaporative demand is high. To detect this response, we modeled the difference between leaf and air temperature (∆T) as a function of local soil moisture, vapor pressure deficit, and wind speed for two tree species, lodgepole pine (Pinus contorta var. latifolia) and white spruce (Picea glauca). We used those same weather and soil conditions to model dendrometer-based measurements of daily changes in internal tree water deficit (∆TWD). While canopy leaf temperature and daily change in tree water deficit showed little direct correlation with one another, these variables both responded to soil moisture, vapor pressure deficit, and wind speed in a manner that reflects responses to water stress as soil became progressively drier over the summer months. The two species showed some differences related to species-specific strategies for drought avoidance. The application of thermal imagery to detect water stress in natural forest ecosystems can improve understanding of how trees experience water stress across species and environmental conditions.