Soil moisture affects various hydrological processes, including evapotranspiration, infiltration, and runoff. Forested areas in the lower western Himalaya in India constitute the headwater catchments for many hill streams and have experienced degradation in forest cover due to grazing, deforestation and other human activities. This change in forest cover is likely to alter the soil moisture regime and, consequently, flow regimes in streams. The effect of change in forest cover on soil moisture regimes of this dry region has not been studied through long term field observations. We monitored soil matric potentials in two small watersheds in the lower western Himalaya of India. The watersheds consisted of homogeneous land covers of moderately dense oak forest and moderately degraded mixed oak forest. Observations were recorded at three sites at three depths in each watershed at fortnightly intervals for a period of three years. The soil moisture contents derived from soil potential measurements were analyzed to understand the spatial, temporal and profile variations under the two structures of forest cover. The analysis revealed large variations in soil moisture storage at different sites and depths and also during different seasons in each watershed. Mean soil moisture storage during monsoon, winter and summer seasons was higher under dense forest than under degraded forest. Highest soil moisture content occurred at shallow soil profiles, decreasing with depth in both watersheds. A high positive correlation was found between tree density and soil moisture content. Mean soil moisture content over the entire study period was higher under dense forest than under degraded forest. This indicated a potential for soil water storage under well managed oak forest. Because soil water storage is vital for sustenance of low flows, attention is needed on the management of oak forests in the Himalayan region. Soil moisture affects various hydrological processes, including evapotranspiration, infiltration, and runoff. Forested areas in the lower western Himalaya in India constitute the headwater catchments for many hill streams and have experienced degradation in forest cover due to grazing, deforestation and other human activities. change in forest cover is likely to alter the soil moisture regime and, therefore, flow regimes in streams. The effect of change in forest cover on soil moisture regimes of this dry region has not been studied through long term field observations. We monitored soil matric potentials in two small watersheds in the lower western Himalaya of India. The watersheds consisted of homogeneous land covers of moderately dense oak forest and moderately degraded mixed oak forest. Observations were recorded at three sites at three depths in each watershed at fortnightly intervals for a period of three years. The soil moisture contents derived from soil potential measu rements were analyzed to understand the spatial, temporal and profile variations under the two structures of forest cover. The analysis revealed large variations in soil moisture storage at different sites and depths and also during different seasons in each watershed. winter and summer seasons was higher under dense forest than under degraded forest. Highest soil moisture content occurred at shallow soil profiles, decreasing with depth in both watersheds. A high positive correlation was found between tree density and soil moisture content. the entire study period was higher under dense forest than under degraded forest. This indicates a potential for soil water storage under well managed oak forests. Because soil water storage is vital for sustenance of low flows, attention is needed on the management of oak forests in the Himalayan region.