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Light use efficiency (LUE) is a crucial indicator used to reflect the ability of terrestrial ecosystems to transform light energy. Understanding the long-term trends in LUE and its influencing factors are essential for determining the future carbon sink and carbon sequestration potential of terrestrial ecosystems. However, the long-term interannual variability of LUE in grasslands in northern China at the ecosystem scale is poorly understood due to the limitations of the year length and the coverage of the site data. In this study, we assessed the long-term LUE trends in the grasslands of northern China from 1982 to 2018 and then revealed the relationships between interannual variability in LUE and climate factors. Our study showed a substantial rising trend for LUE from 1982 to 2018 in the grasslands of northern China (3.42 × 10−3 g C/MJ/yr). Regarding the different grassland types, alpine meadow had the highest growth rate (4.85 × 10−3 g C/MJ/yr), while temperate steppe had the lowest growth rate (1.58 × 10−3 g C/MJ/yr). The climate factors driving LUE dynamics were spatially heterogeneous in grasslands. Increasing precipitation accelerated the interannual growth rate of LUE in temperate steppe, and increasing temperature accelerated the interannual growth rate of LUE in other types. In addition, the temporal dynamic of LUE showed different trends in relation to time scales, and the growth trend slowed down after 1998. Our results should be considered in developing future grassland management measures and predicting carbon cycle–climate interactions. [ABSTRACT FROM AUTHOR]