Description:Northern peatlands store nearly one-third of global soil carbon. In these cold, anoxic environments, decomposition is regulated by microbial networks adapted to oxygen limitation, allowing carbon, including recalcitrant phenolic compounds, to accumulate. Climate warming and drought increase oxygen availability, altering microbial carbon access. We leverage the SPRUCE whole-ecosystem warming experiment and an extreme drought that lowered water tables by 30 cm to determine how these perturbations influence microbial carbon cycling. Warming stimulated aerobic bacteria that correlated with porewater CO2 and metabolized phenolic compounds. Drought amplified warming effects by deepening water tables, stimulating aerobic respiration while suppressing fermentation and methanogenesis. Methanogen activity increased with warming under anoxic conditions but declined with drought. Metabolite-informed network analysis revealed covariance between fatty acids, amino acids, methanogens, and warming-responsive facultatively anaerobic heterotrophs, suggesting that organic acid exchange links temperature-sensitive heterotrophic and methanogenic processes.