Today, European beech (Fagus sylvatica L.) seems to be a markedly successful tree species in the north-east of its distribution range. The distribution area may be larger than originally assumed; past forest management is probably the main cause of the contraction in the postglacial European beech range. Numerous attempts consistently have failed to locate a distinct distribution edge for European beech. Therefore, we define northern and eastern Poland and the southern regions of the Baltic States as margins of European beech distribution. Ecophysiological approaches have identified the drought constraints for European beech in terms of (1) the critical limit for xylem cavitation and loss of hydraulic conductivity, reached at a shoot water potential of -1.9 MPa, and (2) a reduction in gross primary production and total ecosystem respiration when relative extractable soil water reaches 40 and 20 per cent, respectively. However, it is difficult to correlate European beech distribution margins with single macro-climatic factors. Moreover, the adaptation of European beech populations and provenances to drought and frost varies. The phenotypic plasticity and evolutionary adaptability of European beech appear to be underestimated. These characteristics may counteract a further contraction of the European beech range arising from climate change in the future.