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Summary Grasses are exceptionally productive, yet their hydraulic adaptation is paradoxical. Among C₃grasses, a high photosynthetic rate (A_area) may depend on higher vein density (D_v) and hydraulic conductance (K_leaf). However, the higherD_vof C₄grasses suggests a hydraulic surplus, given their reduced need for highK_leafresulting from lower stomatal conductance (g_s).Combining hydraulic and photosynthetic physiological data for diverse common garden C₃and C₄species with data for 332 species from the published literature, and mechanistic modeling, we validated a framework for linkages of photosynthesis with hydraulic transport, anatomy, and adaptation to aridity.C₃and C₄grasses had similarK_leafin our common garden, but C₄grasses had higherK_leafthan C₃species in our meta‐analysis. Variation inK_leafdepended on outside‐xylem pathways. C₄grasses have highK_leaf : g_s, which modeling shows is essential to achieve their photosynthetic advantage.Across C₃grasses, higherA_areawas associated with higherK_leaf, and adaptation to aridity, whereas for C₄species, adaptation to aridity was associated with higherK_leaf : g_s. These associations are consistent with adaptation for stress avoidance.Hydraulic traits are a critical element of evolutionary and ecological success in C₃and C₄grasses and are crucial avenues for crop design and ecological forecasting.