Effect of water supply on Satureja hortensis L. (summer savory) ‘Budakalászi’ cultivar was investigated. Three saturation levels (70–50–30%) of soil water capacity (SWC) applied in climatic chamber resulted in significant changes of physiological parameters of savory plants. Compared to the control treatment (70% of SWC) the driest condition (30% SWC) caused more than 20% decrease of the relative water content (RWC) of plants and an almost 5-fold lower water potential. SPAD values indicated 45% higher chlorophyll content in the lowest watering regime. The reduction of SWC (30%) significantly affected the production of savory: fresh weight was reduced by 54% while dry weight decreased by 46%. No changes were detected in the leaf mass/total shoot mass ratio. The highest essential oil (EO) concentration of leaves (5.300 ml·100 g⁻¹) was measured in plants of moderate drought stress (50% SWC) while the control plants and plants exposed to severe water stress treatment showed lower essential oil accumulation (4.922 and 4.782 ml·100 g⁻¹, respectively). The EO production calculated from the values of fresh yield, and the EO concentration were the lowest in the case of plants grown in pots of lowest soil water content. The main components of the oil were carvacrol (56.7–60.6% EO) and γ-terpinene (29.7–32.3% EO) in each treatment. Water supply did not modify significantly the quantitative composition of the EO, however, it influenced noticeably the headspace volatiles (HS). In contrast with the former practice we found that without a proper water supply the cultivation of summer savory cannot be efficient.