Traits determine species response to climate conditions and the match between phenotypes and climate mediates spatial variation in species composition. These trait–climate linkages can be disrupted in human‐modified landscapes. Human land use creates forest fragments where dispersal limitation or edge effects exclude species that may otherwise suit a given macroclimate. Furthermore, stressful macroclimate can limit viable trait combinations such that only a subset of values of any given trait occurs with respect to another trait, resulting in stronger trait covariance. Because forest loss can compound climatic stress, trait covariance from benign to harsher climates is expected to be stronger in fragments compared to contiguous forests. In a wet tropical forest landscape in the Western Ghats Biodiversity Hotspot of peninsular India, I compared fragments with adjacent contiguous forests for signatures of trait‐mediated assembly of tree communities. Using four key plant traits—seed size, specific leaf area (SLA), wood density, and maximum height—I evaluated trait–abundance associations and trait covariance across climate, soil, and elevation gradients. In the contiguous forest, smaller‐seeded, shorter, thinner‐leaved species became more abundant from low to high elevations. In fragments, species with higher SLA were more abundant at sites with more seasonal climates and lower precipitation, and larger seeded species were less abundant at warmer sites. However, traits only weakly predicted abundances in both habitats. Moreover, only contiguous forests exhibited significant compositional change via traits, driven by trait syndromes varying along a composite gradient defined by elevation, water deficit, and soil C:N ratio. Site‐level trait covariance revealed that warmer, wetter conditions in fragments favored taller species for given seed size, as compared to similar conditions in contiguous forests. Overall, trait syndromes and trait covariance, rather than single traits, determined the phenotypes best suited to macroclimate conditions and should inform management or restoration goals in fragments.