Microsites related to microenvironmental conditions, including microclimate, seem to be a key factor for the restoration of forests in the subalpine area. Tree growth was studied in Picea abies (L.) Karst. (Norway spruce) and Larix decidua Mill. (European larch) on 30 plots located at different microsites (i.e., different elevations and micro top o graphies combined) within the subalpine zone (168-–1940 m) of the Schmirn Valley (Tyrol, Austria). The age of the trees studied was 27 years for larch and 28 years for spruce. The mean height and biomass growth decreased significantly with increasing elevation. The effect of elevation and microtopography on growth varied with tree size (age): (1) elevation had little effect on growth of trees less than 0.5 m in height; (2) both elevation and microtopography affected tree growth significantly when the tree height was between 0.5 and 3 m; (3) as trees exceed 3 m in height, tree canopies can fully cover the ground surface and create a forest microclimate causing growth to decline with increasing elevation, irrespective of microtopography. We conclude that the microclimate, associated with microsite, controls growth during the early stages of tree development, but following canopy closure, the local climate (mesoclimate) associated with topography begins to determine tree growth.