Solar-induced chlorophyll fluorescence (SIF) is widely accepted as a proxy for gross primary productivity (GPP). Among the various SIF measurements, tower-based SIF measurements allow for continuous monitoring of SIF variation at a canopy scale with high temporal resolution, making it suitable for monitoring highly variable plant physiological responses to environmental changes. However, because of the strong and close relationship between SIF and absorbed photosynthetically active radiation (aPAR), it may be difficult to detect the influence of environmental drivers other than light conditions. Among the drivers, atmospheric dryness (vapor pressure deficit, VPD) is projected to increase as drought becomes more frequent and severe in the future, negatively impacting plants. In this study, we evaluated the tower-based high-frequency SIF measurement as a tool for detecting plant response to highly variable VPD. The study was performed in a mixed temperate forest in Virginia, USA, where a 40-m-tall flux tower has been measuring gas and energy exchanges and ancillary environmental drivers, and the Fluospec 2 system has been measuring SIF. We show that a proper definition of light availability to vegetation can reproduce SIF response to changing VPD that is comparable to GPP response as estimated from eddy covariance measurement: GPP decreased with rising VPD regardless of how aPAR was defined, whereas SIF decreased only when aPAR was defined as the PAR absorbed by chlorophyll (aPARchl) or simulated by a model (Soil Canopy Observation, Photochemistry and Energy fluxes, SCOPE). We simulated the effect of VPD on SIF with two different simulation modes of fluorescence emission representing contrasting moisture conditions, ‘Moderate’ and ‘Soil Moisture (SM) Stress’ modes. The decreasing SIF to rising VPD was only found in the SM Stress mode, implying that the SIF-VPD relationship depends on soil moisture conditions. Furthermore, we observed a similar response of SIF to VPD at hourly and daily scales, indicating that satellite measurements can be used to study the effects of environmental drivers other than light conditions. Finally, the definition of aPAR emphasizes the importance of canopy structure research to interpret remote sensing observations properly.