Very little is known about potential benefits of using AM inoculation as a tool to alleviate drought stress of trees grown under nursery conditions. There is some evidence that benefits of mycorrhiza on gas exchange parameters and growth of trees are proportionally greater when trees are subjected to drought stress. We hypothesized that inoculation with mycorrhiza would increase growth, nutrition, stem water potential and gas exchange of containerized almond (Prunus dulcis (Mill.) D.A. Webb) when young trees are grown under low water availability. In the spring of 2015 and 2016, forty containerized almond trees (Nonpareil scion grafted on Hansen 536, a peach/almond hybrid rootstock) were either inoculated or not with a commercially available arbuscular mycorrhizal inoculum and kept well-watered for 60 days in 2015 and 54 days in 2016, after which half of the plants were exposed to gradually reduced water availability over 38 days in 2015 and 61 days in 2016. Measurements included growth metrics, stem water potential, stomatal density, leaf NPK concentration, light saturated photosynthesis, and parameters calculated from CO2 response curves (Vcmax, J, TPU, Rd, gm, and stomatal limitation).The low-water treatment decreased stem water potential and reduced trunk diameter growth, light saturated photosynthesis (A), stomatal conductance (gs), Vcmax, J, TPU, gm, specific root length, leaf N and K concentration and total leaf N, P, and K content. Inoculation decreased root mass, increased leaf mass fraction, and decreased root mass fraction in 2015, but not in 2016. Neither stem water potential nor gas exchange were significantly altered by inoculation. Inoculation decreased leaf stomatal density, and slightly elevated leaf N and P concentrations in the low water treatments, although not consistently across years. Contrary to expectations we did not find substantially greater benefits from mycorrhizal inoculation in young drought stressed almond trees and conclude that the potential for mycorrhizal inoculant to alleviate drought stress in containerized trees is minimal.