ABSTRACTTropical biodiversity is undergoing unprecedented changes due to the hydrological cycle intensification, characterized by more intense droughts and wet seasons. This raises concerns about the resilience of animal and plant communities to such extremes and the existence of potential refugia—areas theorized to safeguard biological communities from adverse climate impacts. Over 20 years of monitoring in Central Amazonia, we investigated the short‐term and long‐term effects of hydrological cycle intensification on bird, fish, ant, and palm communities. We explored whether the ‘insurance effect’ of climate trends (droughts buffered by preceded wet seasons) or ‘environmental refugia’ (droughts or floods buffered by topographic features) could lessen the impact of climate events on community composition, richness, evenness, and species rank. Pronounced abundance changes were observed among animal species, whereas palm species showed relative temporal stability. Birds and fish were more affected by the immediate and long‐term severity of droughts and wet periods, while ants responded primarily to short‐term drought impacts. Conversely, palm communities exhibited delayed responses to climate extremes, primarily in long‐term comparisons. As expected, the proposed ‘insurance effect’ mitigates the long‐term impacts of extreme climate events on animal and plant community trends. However, less extreme hydrological conditions linked to topographic features did not provide effective ‘environmental refugia’ for animals or plants during adverse climate conditions. These outcomes underscore the complex and varied biological responses to ongoing climate change, challenging the prevailing assumptions about the efficacy of environmental refugia and highlighting the nuanced resilience of biodiversity in Central Amazonia.