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The grasslands in high-latitude areas are sensitive to climate warming and drought. However, the drought stress effect on the long-term variability of grassland productivity at the continental scale still hinders our understanding. Based on aboveground net primary production (ANPP) surveys, satellite remote sensing Normalized Difference Vegetation Index (NDVI), and meteorological data, we comprehensively analyzed three Aridity metrics and their effect on ANPP in Eurasian grassland from 1982 to 2020. Our results showed that the ANPP had an overall uptrend from 1982 to 2020, increasing most in the Tibetan Plateau alpine steppe subregion (TPSSR). Among three Aridity indicators, vapor pressure deficit (VPD) had an overall uptrend, while the trend of Aridity and soil moisture (SM) was insignificant from 1982 to 2020. Soil drought had negative effects on ANPP for all Eurasian grassland, while the atmospheric VPD had a positive effect on ANPP for TPSSR and the Mongolian Plateau steppe subregion (MPSSR), but a negative effect for the Black Sea–Kazakhstan steppe subregion (BKSSR) which was the driest subregion. SM had been the predominant driving factor for the interannual variability of ANPP in MPSSR since 1997. The increasing VPD had facilitated grassland productivity in alpine grasslands due to its cascading effect with an increasing temperature after 2000. The cascading effects networks of climate factors—drought factors (VPD, Aridity, and SM)—ANPP (CDA–CENet) indicated that SM was the predominant driving factor of the interannual variability of ANPP in MPSSR and BKSSR, and the dominance of SM had enhanced after the year 1997. The inhibitory effect of VPD on ANPP transformed into a facilitating effect after 1997, and the facilitating effect of SM is weakening in TPSSR. [ABSTRACT FROM AUTHOR]