The distribution of seasonal precipitation would profoundly affect the dynamics of carbon fluxes in terrestrial ecosystems. However, little is known about the impacts of extreme precipitation and size events on ecosystem carbon cycle when compared to the effects of average precipitation amount. The study involved an analysis of carbon fluxes and water exchange using the eddy covariance and chamber based techniques during the growing seasons of 2015-2017 in Bayan, Mongolia and 2019-2021 in Hulunbuir, Inner Mongolia, respectively. The components of carbon fluxes and water exchange at each site were normalized to evaluate of relative response among carbon fluxes and water exchange. The investigation delved into the relationship between carbon fluxes and extreme precipitation over five gradients (control, dry spring, dry summer, wet spring and wet summer) in Hulunbuir meadow steppe and distinct four precipitation sizes (0.1-2, 2-5, 5-10, and 10-25 mm d-1) in Bayan meadow steppe. The wet spring and summer showed the greatest ecosystem respiration (ER) relative response values, 76.2% and 73.5%, respectively, while the dry spring (-16.7%) and dry summer (14.2%) showed the lowest values. Gross primary production (GPP) relative response improved with wet precipitation gradients, and declined with dry precipitation gradients in Hulunbuir meadow steppe. The least value in net ecosystem CO2 exchange (NEE) was found at 10-25 mm d-1 precipitation size in Bayan meadow steppe. Similarly, the ER and GPP increased with size of precipitation events. The structural equation models (SEM) satisfactorily fitted the data (χ2 = 43.03, d.f. = 11, p = 0.215), with interactive linkages among soil microclimate, water exchange and carbon fluxes components regulating NEE. Overall, this study highlighted the importance of extreme precipitation and event size in influencing ecosystem carbon exchange, which is decisive to further understand the carbon cycle in meadow steppes.