<p><strong>Abstract.</strong> While CO<sub>2</sub> production in soils strongly responds to changes in temperature and moisture, the magnitude of such responses at different time scales remains difficult to predict. In particular, little is known of the mechanisms leading to interactions in the effects of these drivers on soil CO<sub>2</sub> emissions, even though such observations are common. Here we compare a number of modelling approaches to test which underlying mechanisms best simulate the interactive responses measured in soils incubated under combined levels of temperature and moisture. We found that two model components were critical for reproducing the observed interactive patterns: 1. Michaelis-Menten reaction kinetics, which strongly improved the model fit when applied to decomposition reactions, and 2. diffusion of dissolved C and enzymes. The latter replaces conventional empirical functions as a mechanism relating moisture content with C fluxes. Indeed, empirical functions failed to capture the main observed interactions. After model calibration we were able to explain 84&#8201;% of the variation in the data. Model simulations resulted in a decoupling of decomposition and respiration C fluxes in the short and mid-term, with interaction effects and general sensitivities to temperature and moisture being more pronounced for respiration. Sensitivity to different model parameters was highest for those affecting diffusion limitations, followed by activation energies, the Michaelis-Menten constant, and carbon use efficiency. Model validation resulted in a high fit against independent data (R<sup>2</sup>&#8201;=&#8201;0.99). The same underlying model parameters resulted here in different apparent temperature sensitivities compared to the calibration step, demonstrating a strong effects of initial soil conditions. With these results we could demonstrate the importance of model structure and the central role of diffusion and reaction kinetics for simulating complex soil C dynamics related to temperature and moisture interactions. Future studies should further validate this mechanistic approach and extend its use to a larger range of soils.</p>