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Droughts and heat waves are increasing in magnitude and frequency, altering the carbon cycle. However, understanding of the underlying response mechanisms remains poor, especially for the combination (hot drought). We conducted a 4‐year field experiment to examine both individual and interactive effects of drought and heat wave on carbon cycling of a semiarid grassland across individual, functional group, community and ecosystem levels. Drought did not change below‐ground biomass (BGB) or above‐ground biomass (AGB) due to compensation effects between grass and non‐grass functional groups. However, consistently decreased BGB under heat waves limited such compensation effects, resulting in reduced AGB. Ecosystem CO2 fluxes were suppressed by droughts, attributed to stomatal closure‐induced reductions in leaf photosynthesis and decreased AGB of grasses, while CO2 fluxes were little affected by heat waves. Overall the hot drought produced the lowest leaf photosynthesis, AGB and ecosystem CO2 fluxes although the interactions between heat wave and drought were usually not significant. Our results highlight that the functional group compensatory effects that maintain community‐level AGB rely on feedback of root system responses, and that plant adjustments at the individual level, together with shifts in composition at the functional group level, co‐regulate ecosystem carbon sink strength under climate extremes. • It is indispensable to explore the mechanisms and impacts of climate extremes on the carbon cycle given they are increasing in magnitude and frequency.• Aboveground biomass responses to climate extremes rely on the functional group compensatory effects and feedbacks of root system responses.• Plant physiological adjustments and shifts in community composition co‐regulate ecosystem CO2 fluxes under climate extremes. [ABSTRACT FROM AUTHOR]

Summary: Heavy rainfall events are expected to increase in frequency and severity in the future. However, their effects on natural ecosystems are largely unknown, in particular with different seasonal timing of the events and recurrence over multiple years.We conducted a 4 yr manipulative experiment to explore grassland response to heavy rainfall imposed in either the middle of, or late in, the growing season in Inner Mongolia, China. We measured hierarchical responses at individual, community and ecosystem levels.Surprisingly, above‐ground biomass remained stable in the face of heavy rainfall, regardless of seasonal timing, whereas heavy rainfall late in the growing season had consistent negative impacts on below‐ground and total biomass. However, such negative biomass effects were not significant for heavy rainfall in the middle of the growing season. By contrast, heavy rainfall in the middle of the growing season had greater positive effects on ecosystem CO2 exchanges, mainly reflected in the latter 2 yr of the 4 yr experiment. This two‐stage response of CO2 fluxes was regulated by increased community‐level leaf area and leaf‐level photosynthesis and interannual variability of natural precipitation.Overall, our study demonstrates that ecosystem impacts of heavy rainfall events crucially depend on the seasonal timing and multiannual recurrence. Plant physiological and morphological adjustment appeared to improve the capacity of the ecosystem to respond positively to heavy rainfall. [ABSTRACT FROM AUTHOR]