Natural communities are exposed to multiple environmental stressors, which simultaneously impact the population and trait dynamics of the species embedded within these communities. Given that certain traits, such as body size, are known to rapidly respond to environmental change, and given that they can strongly influence the density of populations, this raises the question of whether the strength of the eco‐phenotypic feedback loop depends on the environment, and whether stressful environments would enhance or disrupt this feedback or causal linkage. We use two competing freshwater ciliates—Colpidium striatum and Paramecium aurelia—and expose their populations to a full‐factorial design of increasing salinity and temperature conditions as well as interspecific competition. We found that salinity, temperature, and competition significantly affected the density and cell size dynamics of both species. Cell size dynamics strongly influenced density dynamics; however, the strength of this eco‐phenotypic feedback loop weakened in stressful conditions and with interspecific competition. Our study highlights the importance of studying eco‐phenotypic dynamics in different environments comprising stressful abiotic conditions and species interactions.