Photorespiration (PR) greatly reduces net carbon assimilation in trees (by c. 25%), but has received recent attention particular for its potential role in stress-signaling through the accumulation of hydrogen peroxide (H2O2), a stress signaling agent. Despite an increasing frequency of drought and heat events affecting forests worldwide, little is known about how concurrent abiotic stressors may interact to affect PR and subsequent H2O2 accumulation in trees. Here, we sought to identify how drought and a compounded one-day heat treatment individually and interactively affect PR (determined under variable O2) in Abies alba Mill. seedlings. Additionally, we quantified foliar H2O2 accumulation and enzymatic scavenging via peroxidase in relation to PR rates. We found drought stress to slightly increase PR (+5.2%) during mild-drought (12 days, Ψmd = -0.85 MPa), but ultimately to decrease PR (-13.6%) during severe-drought (26 days, Ψmd = -1.70 MPa) compared to the control, corresponding to increasing non-stomatal limitations of photosynthesis (i.e., decreased electron transport rate). The response of PR to heat stress was dependent on soil water availability as heat stress increased PR in control seedlings (+37.8%), but not in drought-stressed seedlings. Decreased PR during severe-drought corresponded to ~2x lower foliar H2O2 compared to the control. Despite increased PR under heat stress in control seedlings, foliar H2O2 decreased to near-zero likely due to enhanced scavenging as observed in ~2x greater peroxidase activity. Our results demonstrate that carbon loss to PR during drought stress can be highly dynamic, depending on the severity of soil dehydration. Additionally, increased PR under abiotic stress does not necessarily lead to accumulated H2O2, as tight regulation by scavenging enzymes instead minimize oxidative stress, reducing stress-signaling potential.