ABSTRACT Trait‐based approaches feature prominently in ecology, providing mechanistic insights into plant interactions with abiotic and biotic factors. Increasingly, traits are used in restoration and conservation to select species with target functions and to monitor performance in restoration settings. Physiological traits are rarely used, despite their clear relevance for restoration in the context of climate change. We provide rationale and guidance for the expanded integration of physiological traits (e.g., metabolic and energy transfer processes, gas exchange, nutrient dynamics, and hydraulics) into restoration to enhance resilience of terrestrial ecosystems to climate change. We identify traits mediating the tolerance of climate stressors, particularly drought, heat, and salinity due to sea level rise. Physiological traits are highly dynamic, within and among species, and this variability can be leveraged to inform species selection and monitoring efforts. Trait variability via phenotypic plasticity and climate stress thresholds offers key insights into plant performance and population stability under climate stress. Trait‐based approaches complement existing restoration and conservation strategies, including those based on Indigenous ecological knowledge and resource management. Effective researcher‐practitioner collaborations are essential to successfully integrate physiology into ecological restoration. Synthesis and applications . Climate stress is increasing globally, and physiological traits are critical for understanding stress tolerance in plants. Integrating physiology into restoration will contribute to climate resilience, but depends on partnerships between researchers and practitioners and will benefit from increased physiological trait sampling of more species, sites, and traits. Expanded trait coverage will enhance species selection and performance monitoring, improving restoration and species stabilization in a changing climate.