The aim of this study was to investigate the (i) behavior of young Tabebuia serratifolia (Yellow Lapacho) plants exposed to flooding condition, (ii) measuring the physiological and biochemical parameters in leaf and root, and (iii) to discover if this species can be used in areas where the flooding occurs frequently. A completely randomized block design with two water conditions (control and flooding) was used. The parameters measured were the leaf water potential, stomatal conductance, transpiration rate, nitrate reductase activity, nitrate, free ammonium, glutamine synthetase activity, total soluble amino acids, total soluble proteins, alcohol dehydrogenase activity, and lactate dehydrogenase activity. The data showed significant differences in all parameters. The reductions were observed in water relations and nitrogen compounds. However, increases were determined in alcohol dehydrogenase and lactate dehydrogenase activities after flooding. Regarding with organs evaluated, modifications more intense into root for many parameters such as glutamine synthetase and lactate dehydrogenase enzymes, and leaf was more responsive in nitrate, free ammonium, and alcohol dehydrogenase activity. Therefore, Tabebuia serratifolia plants are sensitive to flooding, and are not suitable for areas prone to flooding.