Trees ofSassafras albidum(Nuttall) Nees. display leaves that fall into discrete categories of form. Unlobed leaves, with undissected margins, predominate at proximal and distal nodes of shoots, while lobed leaves are most common at intermediate nodes. In this study we investigated the hypothesis that shoots of sassafras respond to environmental changes over the growing season by generating predictable nodal patterns for leaf morphology and physiology. We recorded leaf shape category and measured leaf surface area, node number, chlorophyll content, nitrogen content, and photosynthesis in four trees. Over 1,000 measurements of photosynthesis were made in situ, using the LI‐Cor LI 6200 portable photosynthesis system. The two trees growing under heavy shade had few lobed leaves (2.0% and 18.8%) and often had negative carbon balance, with positive net photosynthesis occurring during sun flecks. The two trees growing in more open conditions had many more lobed leaves (56.3% and 61.0%) and higher, less variable net photosynthetic rates. As indicated by chlorophyll and nitrogen contents, the highest leaf photosynthetic rates occurred at intermediate nodes (nodes six to nine), and this was shifted distally along the shoot during the growing season. Leaves at intermediate nodes also had the largest surface areas and the greatest frequency of lobing. In comparative experiments with models, lobing was shown to enhance free‐convectional heat loss relative to unlobed leaves of the same surface area. Due to their large surface area, these leaves also have the highest rates of whole leaf photosynthesis. Under conditions of equivalent photosynthetically active radiation, lobed leaves had higher rates of net photosynthesis than did unlobed leaves. We conclude that shoots of sassafras produce groups of leaves with predictably different morphological and physiological specializations.