Two methods of induced in vivo chlorophyll (Chl) fluorescence were used to investigate the effects of varying thallus temperature and hydration on the performance of photosynthetic apparatus of a foliar lichen Cetraria islandica: slow Chl fluorescence induction kinetic with the analysis of quenching mechanisms, and rapid irradiance response curves of photosynthesis derived from quantum yield of photochemical reactions of photosystem 2 (Φ2) recorded at increasing irradiances. We compared responses of photosynthetic apparatus in populations of C. islandica growing in lower altitude (LAP: 1 350 m a.s.l.) and in higher altitude (HAP: 2 000 m a.s.l.). At each altitude, the samples were collected both in fully irradiated sites (HI) and in shade (LI). Temperature optimum of photosynthetic processes was the same for LAP and HAP thalli of LI populations (18 °C), while it was significantly lower for HI HAP (14 °C). Gradual dehydration of fully hydrated thalli led to initial increase (up to 20 % of water saturation deficit, WSD) in FV/FM and Φ2, no change at 20-50 % WSD, and a dramatic decrease of the parameters within 50-80 % of WSD. LI HAP of C. islandica was the best adapted population to low temperature having higher rates of photochemical processes of photosynthesis than HI HAP within temperature range of -5 to +5 °C. The differences between populations were apparent also in Chl content and thallus morphology. and J. Hájek, M. Barták, J. Gloser.