Leaf energy budgets were constructed for 13 species of estuarine C 4 grasses (Poaceae) to elucidate the biophysical effects of drought and salinity on the interception and dissipation of solar energy. Spartina alterniflora, S. anglica, S. argentinensis, S. bakeri, S. cynosuroides, S. densiflora, S. foliosa, S. foliosa × S. alterniflora hybrids, S. gracilis, S. patens, S. pectinata, S. spartinae, and Distichlis spicata plants were grown under controlled soil water potential gradients in a greenhouse. Species were grouped into four major ecological functional types, based on elevational zonation ranges: low marsh species, middle marsh species, high marsh species, and freshwater species. Different functional types are adapted to different environmental conditions, and responded differently to reduced water potentials. Latent heat flux decreased similarly across species in response to decreasing water potential. Latent heat loss was found to decrease by as much as 65% under decreasing water potential, leading to an increase in leaf temperature of up to 4 °C. Consequently, radiative and sensible heat losses increased under decreasing water potential. Sensible heat flux increased as much as 336% under decreasing water potential. Latent heat loss appeared to be an important mode of temperature regulation in all species, and sensible heat loss appeared to be more important in high marsh species compared to low marsh species. High marsh species are characterized by narrower leaves than middle and low marsh species, leading to a smaller boundary layer, and providing higher conductance to sensible heat loss. This may be an adaptation for high marsh species to regulate leaf temperature without access to large amounts of water for transpirational cooling. Stomatal conductance decreased with decreasing water potential across species: leaf conductances to water vapor and CO 2 decreased as much as 69% under decreasing water potential. Additionally, oxidative stress appeared to increase in these plants during times of drought or salinity stress. Ascorbate peroxidase activities increased with decreasing soil water potential, indicating increased cellular reactive oxygen species. High marsh species had higher ascorbate peroxidase activities compared to low marsh species, indicating higher tolerance to drought- or salinity-induced stresses. It was concluded that different species of marsh grasses are adapted for growth in different zones of salt marshes. Adaptations include biophysical, biochemical, and morphological traits that optimize heat exchange with the environment.