Grazing management necessarily emphasizes the most spatially extensive vegetation assemblages, but landscapes are mosaics, often with more mesic vegetation types embedded within a matrix of drier vegetation. Our primary objective was to contrast effects of equine grazing on both subalpine vegetation structure and associated arthropods in a drier reed grass (Calamagrostis muiriana) dominated habitat versus a wetter, more productive sedge habitat (Carex utriculata). A second objective was to compare reed grass and sedge as habitats for fauna, irrespective of grazing. All work was done in Sequoia National Park (California, USA), where detailed, long-term records of stock management were available. We sampled paired grazed and control wet meadows that contained both habitats. There were moderate negative effects of grazing on vegetation, and effects were greater in sedge than in reed grass.Conversely, negative grazing effects on arthropods, albeit limited, were greater in the drier reed grass, possibly due to microhabitat differences. The differing effects on plants and animals as a function of habitat emphasize the importance of considering both flora and fauna, as well as multiple habitat types, when making management decisions. Sedge supported twice the overall arthropod abundance of reed grass as well as greater diversity; hemipteran and dipteran taxa were particularly abundant in sedge. Given the greater grazing effects on sedge vegetation, greater habitat provision for terrestrial arthropods, and value as aquatic arthropod habitat, the wetter sedge assemblage is worthy of additional consideration by managers when planning for grazing and other aspects of land usage.