Dwarf bamboos are an important understory component of the lowland and montane forests in the subtropical regions of Asia and South America, yet little is known about their physiology and phenotypic plasticity in response to changing light environments. To understand how bamboo species adapt to different light intensities, we examined leaf morphological, anatomical, and physiological differentiation of Sinarundinaria nitida (Mitford) Nakai, a subtropical woody dwarf bamboo, growing in open and shaded natural habitats in the Ailao Mountains, SW China. Compared with leaves in open areas, leaves in shaded areas had higher values in leaf size, specific leaf area, leaf nitrogen, and chlorophyll concentrations per unit area but lower values in leaf thickness, vein density, stomatal density, leaf carbon concentration, and total soluble sugar concentration. However, stomatal size and leaf phosphorus concentration per unit mass remained relatively constant regardless of light regime. Leaves in the open habitat exhibited a higher light-saturated net photosynthetic rate, dark respiration rate, non-photochemical quenching, and electron transport rate than those in the shaded habitat. The results of this study revealed that the bamboo species exhibited a high plasticity of its leaf structural and functional traits in response to different irradiances. The combination of high plasticity in leaf morphological, anatomical, and physiological traits allows this bamboo species to grow in heterogeneous habitats.