We determined the effect of moderate water stress on the growth of american ginseng (Panax quinquefolium), and on concentrations of six major ginsenosides (Rg1, Re, Rb1, Rc, Rb2, and Rd). Two-year-old “rootlets” (dormant rhizome and storage root) were cultivated in pots, in a cool greenhouse (18.3 ± 2 °C). Pots were watered either every 5 days (control) or every 10 days (stress), repeatedly for 8 days. Soil volumetric water content was measured during the last 10 days of the experiment for both treatments. Leaf water potential, measured on the last day of the experiment, was -0.43 MPa for the control and -0.83 MPa for the stress treatment. Drought stress did not affect above-ground shoot or root dry weight. Initial rootlet fresh weight (covariate) had a significant effect on the concentration of ginsenosides Re, Rb1, Rc, and Rb2. Drought stress increased the concentration of ginsenosides Re, Rb1, and total ginsenoside concentration.