<p>Climate change is accelerating terrestrial ecosystem degradation, weakening carbon storage capacity, and destabilizing water resource dynamics. These coupled disturbances threaten the delivery of critical ecosystem services and reveal the limitations of fragmented governance systems characterized by poorly coordinated policies, institutions, and management responsibilities across water, forestry, agriculture, biodiversity conservation, and climate planning sectors. This review synthesizes recent advances in the climate-driven interactions between carbon and water cycles, the role of ecosystem services in mediating resilience, and the potential of adaptive ecological governance to support integrated management. We first examine how climate extremes affect carbon sequestration and hydrological processes, with emphasis on feedback mechanisms in forests, peatlands, and semi-arid landscapes. We then assess how regulating ecosystem services, supported by nature-based solutions, integrated land–water management, and biodiversity conservation, contribute to climate resilience. Through cross-scale case studies from Nepal, China, Brazil, Rotterdam in the Netherlands, and the Mekong River Commission member countries, namely Cambodia, Lao PDR, Thailand, and Vietnam, we evaluate governance strategies that align mitigation and adaptation goals. The review highlights that integrated, multilevel, and inclusive governance can enhance carbon–water synergies, reduce trade-offs, and strengthen socio-ecological resilience through community participation, climate finance, institutional learning, and dynamic monitoring. Key knowledge gaps include the need for interdisciplinary frameworks, robust co-benefit quantification, and adaptive monitoring systems. We conclude that integrated ecological governance, supported by cross-sectoral collaboration and data integration, is essential for maximizing ecosystem service benefits under global change.</p> Graphical abstract <p></p>