NATO leaders, during an annual summit in Chicago last month, issued a proclamation stating that the "appropriate mix of nuclear, conventional and missile defense capabilities" was vital for the security of the alliance.
Washington and its allies say a missile defense shield in Europe would counter regional aggression for adversaries such as Iran. Russia says it views the plan as a threat to its national security, warning it may take corresponding action along its western border.
Putin warned that NATO allies "better not do this" or his country would be forced to respond.
"We have every possibility to provide a proper response," he was quoted by Russia's state-run news service RIA Novosti as saying.
Russia tested a prototype ballistic missile at the end of May.
Putin and U.S. President Barack Obama are attending an economic summit next week in Mexico. Putin didn't attend a scheduled May meeting of the Group of Eight at the U.S. presidential retreat at Camp David, Md.