Tropical hyperseasonal savannas provide a rare example of a tropical climax community dominated by graminoid species. Species living in such savannas are frequently exposed to excess heat and light, in addition to drought and waterlogging, and must possess traits to avoid or tolerate these stress factors. Here we examine the contrasting heat and light stress adaptations of two dominant savanna sedges: Lagenocarpus guianensis, which is restricted to the sheltered forest edge, and Lagenocarpus rigidus, which extends from the forest edge to the open savanna. An ecotone extending from the forest edge to the open savanna was used to assess differences in a range of physiological traits (efficiency of photosystem II, cell membrane thermostability, stomatal conductance, leaf surface reflectance and canopy temperature depression) and a range of leaf functional traits (length : width ratio, specific leaf area and degree of folding). Lagenocarpus guianensis showed significantly less canopy temperature depression than L. rigidus, which may explain why this species was restricted to the forest edge. The range of leaf temperatures measured was within the thermal tolerance of L. guianensis and allowed photosystem II to function normally, at least within the cool forest edge. The ability of L. rigidus to extend into the open savanna was associated with an ability to decouple leaf temperature from ambient temperature combined with enhanced cell membrane thermostability. The high degree of canopy temperature depression seen in L. rigidus was not explained by enhanced stomatal conductance or leaf reflectance, but was consistent with a capacity to increase specific leaf area and reduce leaf length: width ratio in the open savanna. Plasticity in leaf functional traits and in cell membrane thermostability are key factors in the ability of this savanna sedge to survive abiotic stress.