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Abstract Drought impacts on microbial activity can alter soil carbon fate and lead to the loss of stored carbon to the atmosphere as CO₂and volatile organic compounds (VOCs). Here we examined drought impacts on carbon allocation by soil microbes in the Biosphere 2 artificial tropical rainforest by tracking¹³C from position-specific¹³C-pyruvate into CO₂and VOCs in parallel with multi-omics. During drought, efflux of¹³C-enriched acetate, acetone and C₄H₆O₂(diacetyl) increased. These changes represent increased production and buildup of intermediate metabolites driven by decreased carbon cycling efficiency. Simultaneously,¹³C-CO₂efflux decreased, driven by a decrease in microbial activity. However, the microbial carbon allocation to energy gain relative to biosynthesis was unchanged, signifying maintained energy demand for biosynthesis of VOCs and other drought-stress-induced pathways. Overall, while carbon loss to the atmosphere via CO₂decreased during drought, carbon loss via efflux of VOCs increased, indicating microbially induced shifts in soil carbon fate.