Temperature drives adaptation in life-history traits through direct effects on physiological processes. However, multiple life-history traits co-evolve as a life-history strategy. Therefore, physiological limitations constraining the evolution of trait means and phenotypic plasticity can be larger for some traits than the others. Comparisons of thermal responses across life-history traits can improve our understanding of the mechanisms determining the life-history strategies. In the present study, we focused on a soil microarthropod species abundant across the Northern Hemisphere, Folsomia quadrioculata (Collembola), with previously known effects of macroclimate. We selected an arctic and a temperate population from areas with highly contrasting climates — the arctic tundra and a coniferous forest floor, respectively — and compared them for thermal plasticity and thermal efficiency in growth, development, fecundity, and survival across four temperatures for a major part of their life cycle. We intended to understand the mechanisms by which temperature drives the evolution of life-history strategies. We found that the temperate population maximized performance at 10–15 °C, whereas the arctic population maintained its thermal efficiency across a wider temperature range (10–20 °C). Thermal plasticity varied in a trait-specific manner, and when considered together with differences in thermal efficiency, indicated that stochasticity in temperature conditions may be important in shaping the life-history strategies. Our study suggests that adopting a whole-organism approach and including physiological time considerations while analysing thermal adaptation will markedly improve our understanding of plausible links between thermal adaptation and responses to global climate change.