Persistence of aquatic fauna depends on the conditions and connectivity of surface water and groundwater. In light of altered baseflows and both current and future predicted increases in stream temperatures, it is important to assess current thermal conditions, examine thermal responses of aquatic fauna, and evaluate water-management practices. Our study objectives were to determine (1) how changes in baseflow levels in the Kiamichi River influence hyporheic exchange, which correspondingly influences temperature at the reach scale; (2) temperature tolerances of stream fishes as a means for predicting how habitat complexity influences stream-fish populations; and (3) assess how dam releases influence the downstream temperature and dissolved oxygen regime during the low-flow period. We quantified hyporheic exchange at four reaches and, as expected, found higher groundwater exchange via transient storage occurred at the upstream sites. The net groundwater flux estimation was negative for the majority of reaches indicating that surface water is lost to groundwater during summer (i.e., losing), baseflow conditions. We determined critical thermal maximum (CTMax) for 17 stream fishes and thermal tolerances ranged 32-38°C. We determined the average thermal tolerance for two habitat fish guilds to calculate changes in thermal stress due to hypothetical reservoir release scenarios. We developed a process-based Water Quality Analysis Simulation Program model to predict downstream temperature conditions over 74-km of river in response to reservoir releases that corresponded to discharges of 0.00 (control), 0.34, 0.59, 0.76, 1.13, and 1.50 m3/s. Based on the dissolved oxygen conditions observed in 2015 and 2017 and biological oxygen demand sampling results, reservoir releases did not directly reduce dissolved oxygen concentrations in the Kiamichi River (though dissolved oxygen concentrations are limited to current water-release strategies by the managing agency). We simulated three scenarios using three water-release temperatures: 27.64°C, 26.00°C and 24.07°C that corresponded to average reservoir temperatures at gate locations on the dam. We compared the predicted temperature time series with CTMax of two fish-habitat guilds to quantify the cumulative time when stream fishes experienced severe thermal stress downstream from Sardis Reservoir. According to our simulations, reservoir releases would be capable of regulating downstream water temperature during the summer baseflow period. The 0.00 m3/s scenario resulted in 130 h of thermal stress for benthic fishes, and 73 h for mid-column fishes. As expected, thermal relief increased with increasing release magnitude and decreasing release water temperature. The 0.34 m3/s release scenario reduced thermal stress (range is simulations from the top and bottom gate) by 11-18% for mid-column fishes and 8-12% for benthic fishes with an effective distance (where the cumulative time above CTMax was reduced by half) of 1-2 km for both guilds. The 0.59 m3/s release scenario reduced thermal stress by 18-25% for mid-column fishes and 12-20% for benthic fishes with effective distances of 4-8 km and 2-7 km, respectively. Three releases representing pre-dam flow magnitudes (0.76, 1.13 and 1.50 m3/s released from top gate) reduced thermal stress up to 46% for mid-column fishes and 41% for benthic fishes with an effective distance of 13-16 km, respectively. Lastly, we quantified temperature-induced stress via whole-body cortisol concentration of six stream fishes in response to prolonged thermal exposure at two temperatures (27°C and 32°C). We found no difference in cortisol levels between temperatures for any of the six species, indicating acclimation to elevated temperatures during the test period. However, Highland Stoneroller Campostoma spadiceum expressed cortisol concentrations greater than typical basal levels at both temperatures, suggesting stress from factors other than temperature (i.e., captivity). Our results suggest different reservoir-release options could improve downstream thermal-fish habitat during the summer baseflow period.