During the Eocene (ca. 45 Ma) a temperate climate at high northern latitudes provided an environment unlike any that currently exists on Earth. The growing season was characterized by long (up to 4 months) periods of continuous, low- to moderate-intensity illumination. While this remarkable light regime offered opportunities for substantial growth, it also imposed physiological challenges consequential to potential carbon sink–source imbalance and resulting downregulation of photosynthetic capacity. To better understand the physiology of adaptation to a continuous-light (CL) environment, we experimentally investigated the effects of CL and carbon sink–source relationships in the deciduous conifer Metasequoia glyptostroboides Hu et Cheng, an extant representative of a genus that was the dominant tree component of many Eocene high-latitude forests. We tested the importance of branch-level and whole-plant sinks in curtailing feedback inhibition and the specific roles of starch and sugars in that process using manipulative experiments. Trees growing under either normal day–night cycles or continuous illumination were subjected to reduction of local, branch-level sinks or both local and whole-tree sinks. Reduction in sink strength led to downregulation of photosynthetic capacity, as evidenced by reduction of photosynthetic rates, carboxylation capacity, and electron transfer capacity. Our results suggest that photosynthetic downregulation is minimized by maintenance of both whole-tree sinks and local sinks. downregulation showed a greater correlation with starch than with sugar content, and ultrastructural evidence indicated that foliar starch accumulated only in chloroplasts, and was accompanied by reduction in functional chloroplast grana, but showed no evidence of physical disruption of thylakoids.