Feed and water efficiency are important traits to improve beef cattle production’s economic and environmental sustainability. This study evaluated residual feed intake (RFI) and residual water intake (RWI) and their relationship with performance, ingestive behavior, and carcass traits in Caracu beef cattle. The data were analyzed using a generalized linear model with least squares means. The ingestive behavior, performance, and carcass traits were influenced by sex (p < 0.05). Males showed higher dry matter intake (DMI), average daily gain (ADG), mid-test metabolic weight (BW0.75), rib eye area, and rump fat thickness than females, besides spending more time drinking and eating. Low RFI animals exhibited higher DMI than high RFI animals. Low RWI animals ingested 3.89 L/d of water further than high RWI animals. The interaction between sex and RWI influenced the DMI, BW0.75, and backfat thickness. The ingestive behavior of low and high RFI animals was similar, although high RWI animals visited a smaller number of drinkers than low RWI animals. Water intake positively affects productive efficiency, and the combined use of RWI and RFI may help improve the selection of more efficient animals contributing to reducing the costs of beef cattle production and improving environmental sustainability.