Landscapes encompass both aquatic and terrestrial ecosystems that experience the same climate but may respond to climate in divergent ways. For example, the time lag between seasonal dry-down of terrestrial soil moisture and decline in streamflow has important implications for species and ecosystem processes across the aquatic–terrestrial interface. How these lags between aquatic and terrestrial hydrology vary with climate and spatial location within watersheds remains largely unexplored. Here, we examine seasonal patterns of aquatic–terrestrial dry-down across seven watersheds in the northwestern USA, spanning a wide range of aridity. We compared daily streamflow data from USGS gages at watershed outlets with simulated daily soil moisture (1979–2020) from multiple locations within each watershed. In all watersheds, annual dry cycles progressed sequentially through the following features: evapotranspiration, precipitation, shallow soil moisture, deep soil moisture, and finally streamflow. Seasonal streamflow minima lagged behind soil moisture minima for shorter durations in more arid watersheds and drier years. Within watersheds, lag times varied spatially due to interactions between elevation and aridity, with short lags in low-elevation soils near streams in arid watersheds and longer lags in less arid watersheds. Collectively, these results indicate shorter lags between seasonal aquatic and terrestrial dry periods in drier watersheds and years, and show that these tighter linkages are spatially aggregated in drier watersheds. The co-occurrence of seasonally dry conditions in both aquatic and terrestrial systems under increasing aridification is likely to intensify stressors on ecosystems and services. Recognizing these patterns may be critical for predicting ecosystem vulnerabilities and informing adaptation strategies to mitigate the impacts of seasonally dry conditions.