Widespread shrubification across the Arctic has been generally attributed to increasing air temperatures, but responses vary across species and sites. Wood structures related to the plant hydraulic architecture may respond to local environmental conditions and potentially impact shrub growth, but these relationships remain understudied. Using methods of dendroanatomy, we analysed shrub ring width (RW) and xylem anatomical traits of 80 individuals of Salix glauca L. and Betula nana L. at a snow manipulation experiment in Western Greenland. We assessed how their responses differed between treatments (increased versus ambient snow depth) and soil moisture regimes (wet and dry). Despite an increase in snow depth due to snow fences (28–39 %), neither RW nor anatomical traits in either species showed significant responses to this increase. In contrast, irrespective of the snow treatment, the xylem specific hydraulic conductivity (Ks) and earlywood vessel size (LA95) for the study period were larger in S. glauca (p < 0.1, p < 0.01) and B. nana (p < 0.01, p < 0.001) at the wet than the dry site, while both species had larger vessel groups at the dry than the wet site (p < 0.01). RW of B. nana was higher at the wet site (p < 0.01), but no differences were observed for S. glauca. Additionally, B. nana Ks and LA95 showed different trends over the study period, with decreases observed at the dry site (p < 0.001), while for other responses no difference was observed. Our results indicate that, taking into account ontogenetic and allometric trends, hydraulic related xylem traits of both species, along with B. nana growth, were influenced by soil moisture. These findings suggest that soil moisture regime, but not snow cover, may determine xylem responses to future climate change and thus add to the heterogeneity of Arctic shrub dynamics, though more long-term species- and site- specific studies are needed.