Photochemical efficiency, photosynthetic capacity, osmoprotectants, and relative water content (RWC) were recorded in saplings of two evergreen plants (Boehmeria rugulosa Wedd. and Olea glandulifera Wall. ex G. Don) grown inside (GL) and outside (OP) a glasshouse during the winter season. The OP plants experienced 2.0-2.5 °C lower air temperature and dew formation in comparison to GL plants. Diurnal observations indicated no change in RWC in the leaves of GL and OP plants, while significant reduction in both transpiration and net photosynthetic (PN) rates was observed in OP plants: the reduction in PN was much more prominent as was also reflected by poor water use efficiency of these plants. Similarly, OP plants also showed decrease in the apparent quantum yield and irradiance-saturated CO2 assimilation rate. The decrease in PN was not associated with decreased stomatal conductance. However, a significant reduction in the ratio of variable to maximum chlorophyll (Chl) fluorescence (Fv/Fm) and Chl content was recorded in the OP plants which also contained more total soluble saccharides but less proline contents. The greater enhancement of PN at 15 °C in comparison to measurements taken at 10 °C in OP plants over GL plants probably indicated an increase in mesophyll capacity of the OP plants' growth at increased temperature. Hence the enhanced growth and productivity of plants grown in sheltered environments could be associated to their higher photosynthetic activity that may have important bearing on their field establishment and productivity in the long run. The response varied with plant species; reduction in PN was greater in B. rugulosa than in O. glandulifera. However, the recovery of OP plants in terms of Fv/Fm in the subsequent months revealed that photosynthetic system of these plants is revocable. and S. C. Joshi, S. Chandra, L. M. S. Palni.