Emerald ash borer (Agrilus planipennis Fairmaire) was recently found on a novel host in North America, white fringetree (Chionanthus virginicus L.) (Oleaceae). In this study, we artificially infested 4-yr-old, naïve white fringetree and white ash (Fraxinus americana L.) saplings under well-watered and water-deficit conditions with emerald ash borer eggs. We used physiological and phenotypical approaches to investigate both plant response to emerald ash borer and insect development at 21, 36, and 61 d postinfestation. Photosynthesis was reduced in both tree species by larval feeding, but not by water deficits. Emerald ash borer larvae established and survived successfully on white ash. Both establishment and survival were lower on white fringetree than on white ash. Larvae were larger, and had reached higher instars at all three time points on white ash than on white fringetrees. Larvae grew faster in white ash under water-deficit conditions; however, water-deficit conditions negatively impacted survival of larvae at 61 d postinfestation in white fringetrees, although head size did not differ among surviving larvae. White ash showed higher callus formation in well-watered trees, but no impact on larval survival was observed. In white fringetree, callus formation was not affected by water treatment, and was inversely related to larval survival. The higher rate of mortality and slow growth rate of larvae in white fringetree as compared to white ash suggest that populations of emerald ash borer may be sustained by white fringetree, but may grow more slowly than in white ash.