Particle image velocimetry (PIV) data obtained in a wind-tunnel model of a canopy boundary layer is used to examine the characteristics of mean flow and turbulence. The vector spacing varies between 1.7 and 2.5 times the Kolmogorov scales. Conditional sampling based on quadrants, i.e. based on the signs of velocity fluctuations, reveals fundamental differences in flow structure, especially between sweep and ejection events, which dominate the flow. During sweeps, the downward flow generates a narrow, highly turbulent, shear layer containing multiple small-scale vortices just below canopy height. During ejections, the upward flow expands this shear layer and the associated small-scale flow structures to a broad region located above the canopy. Consequently, during sweeps the turbulent kinetic energy (TKE), Reynolds stresses, as well as production and dissipation rates, have distinct narrow peaks just below canopy height, whereas during ejections these variables have broad maxima well above the canopy. Three methods to estimate the dissipation rate are compared, including spectral fits, measured subgrid-scale (SGS) energy fluxes at different scales, and direct measurements of slightly underresolved instantaneous velocity gradients. The SGS energy flux is 40–60% of the gradient-based (direct) estimates for filter sizes inside the inertial range, while decreasing with scale, as expected, within the dissipation range. The spectral fits are within 5–30% of the direct estimates. The spectral fits exceed the direct estimates near canopy height, but are lower well above and below canopy height. The dissipation rate below canopy height increases with velocity magnitude, i.e. it has the highest values during sweep and quadrant 1 events, and is significantly lower during ejection and quadrant 3 events. Well above the canopy, ejections are the most dissipative. Turbulent transport during sweep events acts as a source below the narrow shear layer within the canopy and as a sink above it. Transport during ejection events is a source only well above the canopy. The residual term in the TKE transport equation, representing mostly the effect of pressure–velocity correlations, is substantial only within the canopy, and is dominated by sweeps.