Background: There is much interest in how the Amazon rainforest may respond to future rainfall reduction. However, there are relatively few ecosystem-scale studies to inform this debate. Aims: We described the carbon cycle in a 1 ha rainforest plot subjected to 8–10 consecutive years of ca. 50% through-fall reduction (TFR) and compare these results with those from a nearby, unmodified control plot in eastern Amazonia. Methods: We quantified the components of net primary productivity (NPP), autotrophic (Ra) and heterotrophic respiration, and estimate gross primary productivity (GPP, the sum of NPP and Ra) and carbon-use efficiency (CUE, the ratio of NPP/GPP). Results: The TFR forest exhibited slightly lower NPP but slightly higher Ra, such that forest CUE was 0.29 ± 0.04 on the control plot but 0.25 ± 0.03 on the TFR plot. Compared with four years earlier, TFR plot leaf area index and small tree growth recovered and soil heterotrophic respiration had risen. Conclusions: This analysis tested and extended the key findings of a similar analysis 4 years earlier in the TFR treatment. The results indicated that, while the forest recovered from extended drought in some respects, it maintained higher overall Ra relative to the undroughted control, potentially causing the droughted forest to act as a net source of CO2.