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Abstract Climate models predict at least another 1.5°C warming in the next 75 years. This warming drives increased atmospheric drying and a global increase in the severity and duration of ecological drought. Vegetation has the capacity to reduce microclimate temperatures and atmospheric aridity.All species of plants create shade, move water, evapotranspire, humidify the air around them, and affect the temperature and vapour pressure deficit of the environment. Vegetation can thus act as a nature‐based solution to warming and atmospheric drying.These microclimate modifications likely depend on the traits, functional groups and diversity of the plant community. Vegetative feedbacks on microclimate are strong enough to buffer some plants against the negative impacts of warming and drying (e.g. facilitation).Synthesis: Here we present, for the first time, a trait‐based framework that can be applied across study systems for assessing microclimate temperature and humidity under vegetation. This framework includes multiple new hypotheses for future work in this area. We emphasize that a systematic examination of trait–microclimate relationships will enable us to use vegetation as a nature‐based solution to warming and atmospheric drying in a changing climate.