Three species of fast growing fuel wood yielding plants locally available (Acacia holosericea, Bauhinia variegata and Cassia siamea) were characterized in respect of their responses to water stress. Seedlings (25 days) of these species, exposed to two levels of water stress (−0.5 and −1.0 MPa) induced by PEG-6000 for 24 h, were analysed for relative water content (RWC) and the contents of chlorophyll, protein, soluble sugars and proline in leaves along with activities of catalase, peroxidase and superoxide dismutase (SOD). RWC was lower in stressed compared to the unstressed seedlings. However, stress-induced decline in RWC was lowest in B. variegata. Chlorophyll and protein contents declined with increasing levels of water stress, decline being least in B. variegata. Soluble sugar and proline contents increased under water stress particularly in B. variegata. The enzyme activity of catalase (EC-1.11.1.6), peroxidase (EC-1.11.1.7) and SOD (EC-1.15.1.1) decreased with increased levels of water stress. Such decline in the activity of these enzymes was least in B. variegata. Apparently, B. variegata is potentially the species most tolerant to water stress among these three fuel wood-yielding plants.