Water and nitrogen stresses are major constraints for agricultural and forest productivity. Although the effects of water scarcity or nitrogen stress on plant growth, physiology, and yield have been widely studied, few studies have assessed the combined effects of both stresses. In the present study, we investigated the effects of different nitrogen forms (NO3-N, NH4+-N, and a combination of NO3-N + NH4+-N) on antioxidant enzyme activity, osmotic regulatory substances, and nitrogen assimilation in Chinese fir (Cunninghamia lanceolata) plantlets under drought stress (induced by 10% polyethylene glycol). We found that different N ionic forms had different effects on drought-stressed plantlets. Nitrogen supply greatly increased the activities of superoxide dismutase (SOD), peroxidase (POD) and polyphenol oxidase (PPO) when plantlets were exposed to water stress. The malondialdehyde (MDA) contents significantly decreased under the NH4+ + water stress treatment. The proline (Pr) contents significantly increased in both the NO3-N and NH4+-N + water stress treatment. The nitrate reductase (NR) increased by 7.1% in the NO3- + water stress treatment, and the glutamine synthetase (GS), and the glutamate synthase (GOGAT) activity increased in all the nitrogen + water stress treatments. These results suggested that nitrogen supply could alleviate the adverse effects of drought stress on plants by enhancing antioxidant defense and improving nitrogen assimilation, while the effects on plant tolerance to drought stress varied with nitrogen ionic forms.