Vegetation responds dynamically to local microclimates at both short and long time scales via mechanisms ranging from physiological behaviors, such as stomatal closure, to acclimation and adaptation. These responses influence the carbon, water, and energy cycles directly and are therefore crucial to understanding and predicting Earth system responses to a changing climate. Several recent studies have demonstrated that differences in microclimate can induce structural and functional acclimations, and potentially adaptations, within the same ecosystem. Such microclimate divergence can be caused by variability in slopes, disturbance history, or even localized resource availability. Ecosystem stressors such as low soil water availability, limited photoperiod, or high vapor pressure deficit have been shown to reveal the large impact of the subtle differences within these systems such as the number of sun versus shade leaves or differences in whole-plant water acquisition and use. These findings highlight the linkages between plant canopy structure and ecosystem function, alongside the need for comprehensive analyses of vegetation within the broader context of its environment. This commentary addresses some of the key implications of ecosystem stress responses and accompanying acclimations across three ecosystem types for ecosystem ecology, plant physiology, ecohydrology and trait-based modeling of vegetation-climate dynamics.