AbstractConsidering the global intensification of aridity in tropical biomes due to climate change, we need to understand what shapes the distribution of drought sensitivity in tropical plants. We conducted a pantropical data synthesis representing 1117 species to test whether xylem‐specific hydraulic conductivity (K_S), water potential at leaf turgor loss (Ψ_TLP) and water potential at 50% loss of K_S (Ψ_P50) varied along climate gradients. The Ψ_TLP and Ψ_P50 increased with climatic moisture only for evergreen species, but K_S did not. Species with high Ψ_TLP and Ψ_P50 values were associated with both dry and wet environments. However, drought‐deciduous species showed high Ψ_TLP and Ψ_P50 values regardless of water availability, whereas evergreen species only in wet environments. All three traits showed a weak phylogenetic signal and a short half‐life. These results suggest strong environmental controls on trait variance, which in turn is modulated by leaf habit along climatic moisture gradients in the tropics.