Abstract. Soils are the largest carbon (C) pool on the planet, and grassland soils have a particularly large C sequestration potential. Appropriate land management strategies, such as organic matter additions, can improve soil health, increase soil C stocks, and increase grassland resilience to drought by improving soil moisture retention. However, soil C dynamics are deeply linked to vegetation response to changes in both management and climate, which may also be manifested differently in roots and shoots. This study presents findings from a three-year experiment that assessed the impact of a compost amendment and of reduced precipitation on soil and vegetation C pools. Compost addition increased aboveground biomass and soil C content (%C), but because bulk density decreased, there was no significant effect on soil C stocks. Drought decreased aboveground biomass, but did not significantly affect root biomass. Overall, the soil amendment shifted C allocation to aboveground plant organs, and drought to belowground organs. We also observed significant spatial and temporal variability in vegetation biomass and soil C over the study period. These results highlight the need to consider multiple biotic and abiotic factors driving ecosystem C dynamics across spatial scales when upscaling results from field trials.