AbstractIncreasing frequency and intensity of climate extremes have profound impacts on grassland biodiversity functioning and stability. Using Moderate Resolution Imaging Spectroradiometer (MODIS) net primary productivity (NPP) data and standardized precipitation evapotranspiration index, we assessed the response of NPP to growing‐season and annual climate extremes and time‐lag of climatic conditions across four grassland types (meadow steppe, typical steppe, steppe desert, and desert steppe) in Inner Mongolia, China from the period 2000 to 2019. Results showed that annual NPP varied significantly across four grassland types, with the highest NPP in meadow steppe and the lowest in desert steppe. Annual NPP of all grassland types increased over the past 20 years, but NPP in meadow steppe and typical steppe decreased for the period 2012–2019. Irrespective of grassland type, the 1‐ and 2‐month time‐lag of climatic conditions showed significant effects on annual NPP. Growing‐season climate was found the better predictor of annual NPP in all grassland types than the annual climate. Compared with growing‐season normal climates, annual NPP was lowest in extreme dry events in all grasslands, while highest in extreme wet events in meadow steppe and typical steppe, and in moderate wet events in steppe desert and desert steppe. Typical steppe and steppe desert are highly vulnerable to the increasing intensity of climate extremes, as we found that the losses of NPP in these grasslands in extreme dry were almost double than that of moderate dry events. Surprisingly, for meadow steppe and desert steppe, the losses of NPP for both moderate and extreme dry events were almost the same, which highlights that a low‐intensity drought may have profound impacts on the annual NPP of these grasslands. The study provides the key insight in scientific basis to improve our understanding of the effects of climate extremes on grassland NPP, which is critical to sustainable management of grassland and maintain ecosystem stability.