Grassland covers about one quarter of the Earth's land area and is currently estimated to contribute to the livelihoods of over 800 million people. Grassland provides ecosystem goods and services, mainly through the provisioning of milk and meat. Therefore, the proper use of grasslands will be essential for feeding the nine billion people that will inhabit planet Earth by 2050. In the context of a changing climate, we should better understand the interactions of environment, management and grass crop at individual, community and ecosystem levels. Functional ecology focuses on the roles and functions that species play in the community or ecosystem in which they occur. Functional ecology thus aims to understand how plant species adapt to environmental conditions and how management can alter this adaptation. Here, we review the latest advances in plant functional traits research and on species strategies to the main environmental factors occurring in grassland ecosystems: nutrient availability, grazing, cutting and shading. Functional ecology also provides a framework to better understand how species strategies interact with the species composition at the community level. Therefore, the literature on community assembling theories in relation to ecosystem processes most relevant to grassland management and services is also reviewed. Finally, future research questions and some new orientations for grassland experts are offered in order to meet the challenge of maintaining productivity and preservation of these semi-natural environments in the face of global change.