Seed mass is an ecologically important trait that often differs considerably among ecotypes. Yet, because few studies examine the impacts of seed mass on adult life-history traits, its role in local adaptation is unclear. In this study, using accessions of
Panicum hallii
that spanned the two major ecotypes, we examined whether covariation between seed mass, seedling and reproductive traits impacts ecotypic divergence and local adaptation. The perennial grass
P. hallii
has two distinct ecotypes—a large-seeded upland ecotype adapted to xeric environments and a small-seeded lowland ecotype adapted to mesic environments. In the greenhouse, seed mass varied greatly across
P. hallii
genotypes in a manner consistent with ecotypic divergence. Seed mass covaried significantly with several seedling and reproductive traits. At field sites representing the habitats of the two ecotypes, seed mass had different impacts on seedling and adult recruitment: selection favoured large seeds in upland habitat and small seeds in lowland habitat, which was consistent with local adaptation. By demonstrating the central role of seed mass in ecotypic differences in
P. hallii
and its importance to seedling and adult recruitment under field conditions, these studies show that early life-history traits can promote local adaptation and potentially explain ecotype formation.