They have tiny leaves that help lower water loss through transpiration. Palo verde leaves drop off during dry periods, further reducing the need for water. In extreme drought, even some of the small branches may die. However, after good rains, new leaves and branches grow. The green bark also enables the tree to continue photosynthesis even during its leafless stage.
Trees produce masses of yellow flowers in spring.
In mid-summer, seed pods are full of hard, brown seeds which are prized by pocket mice and kangaroo rats, who bury the seeds to eat later. Palo verde is the state tree of Arizona.