AbstractA state‐of‐the‐art Lagrangian microphysics scheme is used in a large‐eddy simulation to investigate the stratocumulus transition from closed to open cell structure. Processes controlling precipitation development, which is a key to the transition, are analyzed by leveraging unique benefits of Lagrangian microphysics, particularly the ability to track computational drops in the flow. Sufficient time is needed for coalescence growth of cloud drops to drizzle within the updraft‐downdraft cycle of large eddies. This favors broad drop size distributions (DSDs) and drizzle growth in downdrafts, where drops are typically much older than in updrafts. During the closed cell stage, mean cloud drop radius is too small, and the DSDs are too narrow, so that the timescale for coalescence is much longer than the large eddy turnover time and drizzle growth is limited. The closed‐to‐open cell transition occurs when these timescales become comparable and the precipitation flux increases sharply.