Recently the Mediterranean region has experienced unprecedented drought. Climate models continue to predict an increase in drought frequency and duration, which increases the importance of quantifying the response of already drought-tolerant Mediterranean plants to increased drought. We examined the wood anatomy and dendroecological features of a Mediterranean shrub, Arbutus unedo L., at a xeric and a mesic site on the Italian island of Elba to identify shrub growth response to drought. Cross-sectional microsections of A. unedo stems were stained, described, and crossdated. Annual ring widths of radial microsections were measured and compared with regional climatic variables. False rings (intraannual bands of latewood typically formed in response to a specific stressor) were visible in the wood samples when viewing radial microsections under high magnification. False ring formation coincided with below-average rainfall in late summer at the xeric site, and below-average rainfall and high temperatures in spring and summer at the mesic site. If increased drought occurs in the Mediterranean region, it is likely that plants in this region will experience a drought-induced growth response similar to that seen in A. unedo, and slight differences in drought tolerance may become more important as plants compete for moisture under drier conditions.