Despite breathing water using their tidally ventilated rectal gills, dragonfly nymphs show a surprising ability to maintain oxygen (O2) extraction from the water during hypoxia. However, an increase in convective O2transfer is insufficient to sustain aerobic demands by itself, which suggests that diffusive mechanisms must also be involved. This study examines the contributions of changing the O2partial pressure gradient (PO2) and/or O2conductance across the rectal gill in maintaining O2extraction efficiency (OEE) of dragonfly nymphs during hypoxia. Data were collected using the same custom-designed respiro-spirometer described in a previous study with the addition of an implanted O2sensor to measure hemolymph PO2. Results show that the implantation of the O2sensor does not affect the respiratory and ventilatory response of nymphs to hypoxia. Hemolymph PO2fell from 6.3 ± 1.6 kPa at normoxia to 2.5 ± 0.6 kPa at 16.0 kPa, which resulted in the PO2diffusion gradient remaining statistically constant at these two water PO2s (17.5 ± 1.7 and 15.4 ± 0.7 kPa during normoxia and 16.0 kPa respectively). Beyond 16.0 kPa, a progressive reduction in hemolymph PO2was unable to sustain the diffusion gradient. Mathematical modeling revealed that while the addition of hemolymph PO2in tandem with ventilation frequency was able to elevate OEE during 16.0 kPa to that of normoxia, both were still insufficient during severe hypoxia and required an increase in O2conductance. Estimating the change in whole-gill conductance showed that nymphs are indeed increasing their conductance as the water becomes hypoxic, demonstrating a reliance on both diffusion gradient and O2conductance to enhance diffusive O2transfer in conjunction with convective mechanisms to maintain O2extraction during hypoxia.