Forests in the Himalayas are a major carbon store, but are under threat due to changes in precipitation regime. To simulate a precipitation decline, throughfall-exclusion (TFE) shelters were applied during three consecutive monsoon seasons in an oak forest (2.650 m a.s.l.) and a conifer-dominated forest (3.260 m a.s.l.) in central Bhutan. Leaf water potentials, tree mortality, stem increment, soil CO₂ efflux, litterfall and fine root dynamics were assessed. TFE significantly and consistently decreased topsoil (0–30 cm) moisture and leaf water potentials of Quercus lanata and Quercus griffithii (lower elevation), and to a lesser extend those of Tsuga dumosa and Quercus semecarpifolia, (higher elevation). TFE did not impose tree mortality. Stem increment remained unaffected until the second TFE year, but showed reductions during the third year with Tsuga dumosa being most severely affected (-60%). Standing fine root biomass stocks were hardly affected by TFE. Increased root necromass and faster fine root growth in the lower elevation forest suggest that the oak trees increased C allocation below ground. Soil CO₂ efflux sharply declined during all three TFE years in both forests. Above ground litter input was unaffected by TFE until the second treatment year. Overall, both forest ecosystems appeared highly resistant to the imposed soil drying, with no signs of tree mortality and stable living root biomass stocks.