Seeds of cherry (Prunus avium) were germinated and grown for two growing seasons in ambient (∼350 μmol mol−1) or elevated (ambient+∼350 μmol mol−1) CO2 mole fractions in six open-top chambers. The seedlings were fertilized once a week, following Ingestad principles in order to supply mineral nutrients at free-access rates. In the first growing season gradual drought was imposed on rapidly growing cherry seedlings by withholding water for a 6-wk drying cycle. In the second growing season, the rapid onset of drought was imposed at the height of the growing season on the seedlings which had already experienced drought in the first growing season. Elevated [CO2] significantly increased total dry-mass production in both water regimes, but did not ameliorate the growth response to drought of the cherry seedlings subjected to two sequential drying cycles. Water loss did not differ in either well watered or droughted seedlings between elevated and ambient [CO2]; consequently whole-plant water- use efficiency (the ratio of total dry mass produced to total water consumption) was significantly increased. Similar patterns of carbon allocation between shoot and root were found in elevated and ambient [CO2] when the seedlings were the same size. Thus, elevated [CO2] did not improve drought tolerance, but it accelerated ontogenetic development irrespective of water status.