Amplified eruptive outbreaks of bark beetles as a consequence of climate change can cause tree mortality that significantly affects terrestrial water and carbon fluxes. However, the lack of field-scale observations of underlying physiological mechanisms currently hampers the expression of such ecosystem disturbances in predictive modelling. Based on a unique flux tower dataset from a subalpine forest located in the Rocky Mountains, mechanisms of stomatal response to an extensive bark beetle outbreak were investigated using various models and parametrizations. The datasets cover a decade, including the periods of pre-infestation, infestation, and post-infestation. Field measurements showed considerable decreases in evapotranspiration (ET), transpiration (T), and leaf area index (LAI) during the two-year infestation period compared to the pre-infestation period. Model interpretations of observed water and carbon fluxes indicated that the overall reductions in T were not solely due to decreased LAI, but also to changes in physiological behaviours. The summer season's canopy-scale stomatal conductance was significantly reduced during the infestation period, from 0.0018 to 0.0011 m s⁻¹. One primary reason for the observed variations is likely that the bark beetle infestation hampers the water transport in the xylem. The damage of xylem has important implications for water use efficiency (WUE), which also significantly influences the parameterization of stomatal conductance. When using stomatal conductance models to forecast ecosystem dynamics, it is crucial to recalibrate the model's parameters to ensure the accurate depiction of stomatal dynamics during various infestation periods. The neglect of the temporal variability of canopy-scale stomatal conductance under ecosystem disturbances (e.g., bark beetle infestations) in current earth system models, therefore, requires specific attention in assessments of large-scale water and carbon balances.