Drought stress can profoundly affect plant growth and physiological vitality, yet there is a notable scarcity of controlled drought experiments focused on herbaceous species of the forest understorey. In this study, we collected seeds from five forb and four graminoid species common in European temperate forests. Seeds were germinated under controlled glasshouse conditions and subjected to moderate drought stress for 5 weeks. We assessed biomass partitioning, stomatal and leaf morphology, leaf gas exchange, minimum leaf conductance (g_min), and chlorophyll fluorescence parameters. Comparison of the two ecological guilds revealed that graminoids had a higher R/S, improved WUE, greater carboxylation efficiency, and enhanced non-photochemical quenching under drought conditions compared to forbs. In contrast, forbs had significantly lower g_min, with higher total biomass and total leaf area. Despite these differences in morpho-physiological functional traits, both groups experienced a similar relative reduction in biomass after drought stress. Key predictors of biomass accumulation under drought included photochemical quenching, stomatal traits, total leaf area and g_min. A negative correlation between biomass and g_min suggests that plants with lower residual water loss after stomatal closure can accumulate more biomass under drought stress. Additionally, g_min was positively correlated with guard cell length, suggesting that larger stomata contribute to higher residual water loss. Contrasting strategies in morpho-physiological responses to drought define the differences between the two groups. In graminoids, drought resistance suggests greater emphasis on stress tolerance as a survival strategy. In contrast, forbs were able to maintain higher biomass and total leaf area, indicating a competitive strategy for maximizing resource acquisition.