Little is known about in-canopy processes that may alter forest–atmosphere exchanges of trace gases and aerosols. To improve our understanding of in-canopy mixing, we use large-eddy simulation to study the effect of scalar source/sink distributions on scalar concentration moments, fluxes, and correlation coefficients within and above an ideal forest canopy. Scalars are emitted from: (1) the ground, (2) the canopy, and (3) both the ground and the canopy; a scalar is also deposited onto the canopy. All scalar concentration moments, fluxes, and correlation coefficients are affected by the source location/distribution, as is the scalar segregation intensity.We conclude that vertical source/sink distribution has a profound impact on scalar concentration profiles, fluxes, correlation coefficient, and scalar segregation.