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Over the past decades, rising air temperature has been accompanied by changes in precipitation. Despite relatively robust literature on the temperature sensitivity of carbon cycle at continental to global scales, less is known about the way this sensitivity is affected by precipitation. In this study we investigate how precipitation mediates the response of the carbon cycle to warming over the mid-to-high latitudes in the Northern Hemisphere (north of 30 °N). Based on atmospheric CO2 observations at Point Barrow (BRW) in Alaska, satellite-derived NDVI (a proxy of vegetation productivity), and temperature and precipitation data, we analyzed the responses of carbon cycle to temperature change in wet and dry years (with precipitation above or below the multiyear average). The results suggest that, over the past three decades, the net seasonal atmospheric CO2 changes at BRW were significantly correlated with temperature in spring and autumn, yet only weakly correlated with temperature and precipitation during the growing season. We further found that responses of the net CO2 changes to warming in spring and autumn vary with precipitation levels, with the absolute temperature sensitivity in wet years roughly twice that in dry years. The analyses of NDVI and climate data also identify higher sensitivity of vegetation growth to warming in wet years for the growing season, spring and summer. The different temperature sensitivities in wet versus dry years probably result from differences in soil moisture and/or nutrient availability, which may enhance (inhibit) the responsiveness of carbon assimilation and/or decomposition to warming under high (low) precipitation levels. The precipitation-mediated response of the terrestrial carbon cycle to warming reported here emphasizes the important role of precipitation in assessing the temporal variations of carbon budgets in the past as well as in the future. More efforts are required to reduce uncertainty in future precipitation projections, and to better represent the nonlinearity of carbon cycle responses to climate in current state-of-the-art land surface models.