Abstract Satellite-derived Vegetation Optical Depth and Soil Moisture (SM) data reveal the critical role of the soil-vegetation continuum in storing rainwater during the Indian Summer Monsoon and supporting evapotranspiration (ET) during the dry non-monsoon season. During the non-monsoon drier period, the climatologically estimated spatial mean of ET exceeds precipitation input, a phenomenon known as the Soil-Vegetation Capacitor (SVC) effect, which is pivotal in maintaining ecosystem productivity. Notably, our analysis reveals significant variations in the capacitor period between croplands and forests, with croplands exhibiting a ~77 days longer due to dual crop seasons influenced by regional precipitation. The well-recognized hysteresis curves, observed in magnetization and soil-water characteristic curves (SWCC), highlight phenomena where a system's state is influenced by its historical inputs or states and are integral to our findings. We report a previously undocumented seasonal hysteresis in the relationship between the evaporative fraction (EVF) and SM for Indian croplands and forests. We further found that the croplands SM-EVF relation exhibits a reversal in hysteresis in the case of root-zone SM. The surface SM-EVF hysteresis is not present in forests with large root depths and reduced soil evaporation due to high canopy shading, and yet it is present for the root-zone SM. With its reversal for croplands, the newly found hysteresis must be addressed in redefining the critical SM threshold to demarcate the energy and water-limiting regimes. It should be incorporated in the land surface modeling parameterization. Additionally, we observed hysteresis in the soil moisture-gross primary productivity (SM-GPP) relationship across both land covers and soil profiles (surface and root-zone), underscoring the need to investigate such processes to consider their dynamics in future ecological and hydrological models.