Accurate predictions of species distribution and coexistence in response to environmental changes depend on a thorough understanding of how functional traits relate to environmental conditions. However, there is still limited evidence regarding the sources of functional trait variation and the environmental mechanisms that regulate these traits in tropical forests. This study focuses on Dacrydium pectinatum de Laub., a crucial and endangered species native to the tropical mountain forests of Hainan Island, China. We gathered functional trait data from 68 permanent plots of D. pectinatum situated in three regions: Bawangling (163 tree species), Diaoluoshan (127 tree species), and Jianfengling (175 tree species). Nine functional traits were measured at the species level, and their variation patterns and sources were analyzed using linear mixed-effects models and variance decomposition methods. Our findings reveal that environmental pressures cause variations in trait relationships across different site conditions at the species level. Typically, inter-specific trait variation exceeds intra-specific variation, particularly for leaf area (LA) and specific leaf area (SLA). This indicates that trait variability is influenced by how species adapt to and balance specific environmental conditions. Site conditions significantly impact trait variation, especially for SLA, leaf dry matter content (LDMC), and wood density (WD). Additionally, intraspecific variation is notable for certain traits, reflecting individual responses to environmental heterogeneity. At the community level, eight out of nine traits exhibit significant changes in community-weighted mean (CWM) across various site conditions and environmental gradients. For instance, LA's CWM increases with soil fertility, whereas SLA, leaf nitrogen content (LNC), and leaf phosphorus content (LPC) show differences between site conditions. LDMC and WD decrease significantly in high-fertility environments, suggesting a transition from resource conservation to resource acquisition strategies within communities as soil fertility rises. Geographic variables play a crucial role in trait distributions across different community levels, with elevation and soil factors also contributing significantly to trait variation. Overall, our study provides direct evidence of how environmental filtering influences plant functional trait distributions and community assembly. Future research should explore the mechanisms driving these trait-environment relationships and their responses across various ecological contexts.