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Having a high stature subjects palms to the same constraints as trees, but the lack of cambial growth urges them to adopt a different strategy. We aimed to characterize the spatial organization of xylem tissues and their potential functions in two palm stems: a 30 cm diameter at breast height (DBH) royal palm (Roystonea regia) and a 12 cm DBH Alexandra king palm (Archontophoenix alexandrae). Macroscopic and microscopic anatomical characteristics were assessed at five vertical locations and 5–6 radial locations at each height. Over 9600 vessels across the two stems were drawn manually and measured based on histological sections. Vertically, a hydraulic bottleneck was identified at the first meter, and both stems showed conduit tapering from 4 m to the top. Radially, most water transport and mechanical support were achieved within 2–5 cm below the bark. The larger stem diameter of royal palm may have improved its water transport, storage, and potential for mechanical support compared to king palm. There was a strong trade-off between ground parenchyma and the fiber fraction. However, the correlation between theoretical hydraulic conductivity (K t) and the ground parenchyma fraction, and between K t and the fiber fraction, shifted from positive or non-significant below the bark, to strongly negative close to the center. These changes reflect the functional sectoriality of the palm stems, which may reduce the constraint of trade-offs between water transport, storage, and mechanical support. To conclude, functional sectoriality may have helped both palm species to withstand the hydraulic and mechanical constraints due to high stature. [ABSTRACT FROM AUTHOR]