ABSTRACT Heat stress imposes an important physiological constraint on native plant species—one that will only worsen with human-caused climate change. Indeed, rising temperatures have already contributed to large-scale plant mortality events across the globe. These impacts may be especially severe in cities, where the urban heat island effect amplifies climate warming. Understanding how plant species will respond physiologically to rising temperatures and how these responses differ among plant functional groups is critical for predicting future biodiversity scenarios and making informed land management decisions. In this study, we evaluated the effects of elevated temperatures on a functionally and taxonomically diverse group of woody native plant species in a restored urban nature preserve in southern California using measurements of chlorophyll fluorescence as an indicator of leaf thermotolerance. Our aim was to determine if species’ traits and drought strategies could serve as useful predictors of thermotolerance. We found that leaf thermotolerance differed among species with contrasting drought strategies, and several leaf-level functional traits were significant predictors of thermotolerance thresholds. Drought deciduous species with high specific leaf area, high rates of transpiration and low water use efficiency were the most susceptible to heat damage, while evergreen species with sclerophyllous leaves, high relative water content and high water use efficiency maintained photosynthetic function at higher temperatures. While these native shrubs and trees are physiologically equipped to withstand relatively high temperatures in this Mediterranean-type climate, hotter conditions imposed by climate change and urbanization may exceed the tolerance thresholds of many species. We show that leaf functional traits and plant drought strategies may serve as useful indicators of species’ vulnerabilities to climate change, and this information can be used to guide restoration and conservation in a warmer world.