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Plants can modify xylem anatomy and hydraulic properties to adjust to water status. Elevated [CO2] can increase plant water potential via reduced stomatal conductance and water loss. This raises the question of whether elevated [CO2], which thus improves plant water status, will reduce the impacts of soil water deficit on xylem anatomy and hydraulic properties of plants. To analyse the impacts of water and [CO2] on maize stem xylem anatomy and hydraulic properties, we exposed potted maize plants to varying [CO2] levels (400, 700, 900, and 1,200 ppm) and water levels (full irrigation and deficit irrigation). Results showed that at current [CO2], vessel diameter, vessel roundness, stem cross‐section area, specific hydraulic conductivity, and vulnerability to embolism decreased under deficit irrigation; yet, these impacts of deficit irrigation were reduced at elevated [CO2]. Across all treatments, midday stem water potential was tightly correlated with xylem traits and displayed similar responses. A distinct trade‐off between efficiency and safety in stem xylem water transportation in response to water deficit was observed at current [CO2] but not observed at elevated [CO2]. The results of this study enhance our knowledge of plant hydraulic acclimation under future climate environments and provide insights into trade‐offs in xylem structure and function.