Abstract: Soil microbes play essential roles in maintaining terrestrial ecosystem services. Soil moisture is a primary determinant of soil microbial activities and ecosystem functions, which may fluctuate dramatically with the altered precipitation patterns and extreme drought caused by the ongoing global climate change. Due to the distinct soil microbial tolerance and life-strategy approaches to drought stress and different water status, fluctuation of soil moisture has a direct impact on microbial activities and community structure, thereby profoundly affecting microbial-mediated processes and ecosystem functions. Thus, it is of great significance to understand the dynamics and mechanisms that underlie the microbial responses to soil water status. In this review, we summarized recent progress in the study of responses of soil microbial activities (e.g. soil respiration and enzyme activities) and community structure to soil water status. We summarized underlying microbial physiological and ecological mechanisms, particularly 1) the cellular physiological accommodation such as osmolyte accumulation, exopolysaccharide production and transition into dormant states, and 2) the ecological strategies such as stress-resistant gene transfer and functional redundancy. Therefore, this investigation on the underlying relationship between soil microbial assembly and ecosystem functions under different water status could further demonstrate the microbially-mediated soil biogeochemical processes and provide a theoretical basis for future research and modelling of terrestrial ecosystem responses to climate change.