The loss of digits is a widespread evolutionary trend in tetrapods which occurs in nearly every major clade. Alberch and Gale showed that the order in which digits are evolutionarily lost in salamanders versus frogs corresponds to the order in which they develop in each group, providing a classic example of developmental constraint. However, what actually drives the loss of digits in salamanders has remained unclear. Alberch and Gale suggested that loss of digits might be associated with paedomorphosis or with reduced body size. We test these hypotheses by combining morphometric and phylogenetic information for 98 species of salamanders. We find that digit loss is associated with both paedomorphosis and reduction in body size. However, these trends are surprisingly contradictory, in that paedomorphosis is significantly associated with an increase in body size in salamanders. Thus, much of the extreme digit reduction is found in the smaller species within paedomorphic clades that have, on average, unusually large body size. Our results show that the consequences of changes in body size on morphology are highly context dependent. We also show (possibly for the first time) a significant association between paedomorphosis and increased body size, rather than the expected association with reduced body size.