Under drought conditions, arbuscular mycorrhizal (AM) fungi may improve plant performance by facilitating the movement of water through extensive hyphal networks. When these networks interconnect neighboring plants in common mycorrhizal networks (CMNs), CMNs are likely to partition water among many individuals. The consequences of CMN-mediated water movement for plant interactions, however, are largely unknown. We set out to examine CMN-mediated interactions among Andropogon gerardii seedlings in a target-plant pot experiment, with watering (watered or long-term drought) and CMN status (intact or severed) as treatments. Intact CMNs improved the survival of seedlings under drought stress and mediated positive, facilitative plant interactions in both watering treatments. Watering increased mycorrhizal colonization rates and improved P uptake, particularly for large individuals. Under drought conditions, improved access to water most likely benefited neighboring plants interacting across CMNs. CMNs appear to have provided the most limiting resource within each treatment, whether P, water, or both, thereby improving survival and growth. Neighbors near large, photosynthate-fixing target plants likely benefited from their establishment of extensive hyphal networks that could access water and dissolved P within soil micropores. In plant communities, CMNs may be vital during drought, which is expected to increase in frequency, intensity, and length with climate change.