In Mediterranean seasonally dry regions, the rise in dieback and mortality episodes observed in pine afforestations has been related to higher drought intensity and lack of appropriate management, which enhance competition between trees for water and light. However, there is little understanding of the benefits of silviculture for plantations under seasonal drought stress. A combination of dendrochronology and wood C and O isotope analyses was used in three Black pine (Pinus nigra) plantations to work out the responses of radial growth (BAI, basal area increment) and water-use efficiency (WUEi) to thinning treatments (removal of 40% of the stand basal area). Thinning had a positive effect on BAI and WUEi, reduced drought sensitivity, and reduced the temporal dependence on the previous year’s growth. These results were significant even 13–14 years after thinning and coherent for the three study sites. Differences were found between the sites regarding the physiological mechanisms of adaptation. In two sites, we inferred the enhanced WUEi was due to increased photosynthetic rates (A) at constant stomatal conductance (gs). In the third site, which had higher tree density and therefore competition, we inferred increases in both A and gs, with the former being proportionally larger than the latter.