Plant litter decomposition is a key ecological process that is mostly studied at the forest floor. However, decomposition generally starts in the canopy. In this study, we evaluated the effect of litter composition and climate on the initial phase of decomposition in the soil and two contrasting types of canopy microsites along an elevational gradient (0–2200 m a.s.l.). To this end, we incubated standard material composed by green (fast decomposing) and rooibos (slow decomposing) tea bags for three months. Tea bags were placed in soil (buried at 5 cm) and in the canopy at ca. 5 m above the ground in “micro-wetlands” (tank bromeliads) and dry crown microsites (branches). Along the elevational gradient, green tea decomposed faster than rooibos tea in all microsites and forests. Mass loss for both tea types was lowest on branches at all sites, except for green tea in a wet forest where decomposition did not significantly differ among microsites. In wet forests, decomposition did not differ between bromeliads and soil, while in a dry forest, decomposition was faster in bromeliads. We found that the effects of climatic variables [monthly average temperature (TEMP) and total precipitation (PREC) for the incubation months] on decomposition differed between microsites. Along the elevational gradient, the mass loss in soil was positively correlated with TEMP but not with PREC, whereas on branches, mass loss was negatively correlated with TEMP and positively correlated with PREC. Unlike on branches, mass loss in bromeliads slightly decreased with PREC and increased with TEMP. Our study shows that microsite conditions interact with climate (TEMP and PREC) leading to differences in the general decomposition patterns in the forest canopy.