Grasslands are valuable non-crop habitats in the world's agricultural regions, providing more than simply forage for grazing domestic and wild animals. They provide refuge and resources that support high levels of arthropod biodiversity, most importantly for natural enemies that provide vital biological control services to the surrounding cropped landscape. Ideally, farmers could manage and manipulate grasslands to boost their biocontrol services, although to achieve this, knowledge of the ecological function of these habitats is essential. Unfortunately, grasslands are often bundled together with other habitat types, such as scrubland and forest, under the label 'non-crop habitats', and little is known about the contribution that these specific habitats make towards landscape pest suppression. While recent research has been investigating the importance of other non-crop habitat such as native vegetation remnants, the contribution that grassland habitats may make towards landscape pest suppression remains a significant knowledge gap in biocontrol research. Here, the current understanding of grassland habitats as biological control service providers in the world's mixed farming systems is reviewed. Limited research into whether grassland habitats support natural enemies, and thus contribute biological control services to the adjacent surrounding cropped landscape, has returned inconclusive, even conflicting, results. Potential explanations for this inconsistency are explored, including the lack of studies, inadequate estimates of predator impact and the variety of different grassland habitat types studied, including their diversity in composition and management practices. Conclusions drawn from these studies are discussed, and suggestions for management are recommended, including increasing grassland floristic diversity, limiting intensive management practices and implementing weed control. Future research directions are proposed, along with the need to develop a universal grassland classification system for research, management and conservation purposes, using grassland type, floristic diversity and management practices as key axes for classification.