AbstractWe used instantaneous temperature responses of CO₂‐respiration to explore temperature acclimation dynamics for Eucalyptus grandis grown with differing nitrogen supply. A reduction in ambient temperature from 23 to 19 °C reduced light‐saturated photosynthesis by 25% but increased respiratory capacity by 30%. Changes in respiratory capacity were not reversed after temperatures were subsequently increased to 27 °C. Temperature sensitivity of respiration measured at prevalent ambient temperature varied little between temperature treatments but was significantly reduced from ~105 kJ mol⁻¹ when supply of N was weak, to ~70 kJ mol⁻¹ when it was strong. Temperature sensitivity of respiration measured across a broader temperature range (20–40 °C) could be fully described by 2 exponent parameters of an Arrhenius‐type model (i.e., activation energy of respiration at low reference temperature and a parameter describing the temperature dependence of activation energy). These 2 parameters were strongly correlated, statistically explaining 74% of observed variation. Residual variation was linked to treatment‐induced changes in respiration at low reference temperature or respiratory capacity. Leaf contents of starch and soluble sugars suggest that respiratory capacity varies with source‐sink imbalances in carbohydrate utilization, which in combination with shifts in carbon‐flux mode, serve to maintain homeostasis of respiratory temperature sensitivity at prevalent growth temperature.