Growth form is one of the important life history traits ultimately influencing plant fitness. Potentilla palustris is a stoloniferous plant growing in a range of habitats from densely vegetated wet meadows to acidic transitional fens, and its growth form varies according to habitat. In a four year multi-site comparative study, we investigated which biotic and abiotic characteristics influence most its growth traits. Vegetation composition and physiognomy, as well as numerous abiotic environmental variables, were recorded at 32 study sites located on an altitudinal gradient. Growth traits of P. palustris were best explained by the surrounding vegetation physiognomy and not by abiotic conditions, although the latter obviously represents the factors indirectly influencing its growth. Stolon length traits and branching were positively correlated with vegetation density and height, and negatively with altitude. Plants flowered more in taller vegetation, and leaf area was greater in wetter sites with lower vegetation cover. Potentilla palustris appeared to be well adapted to transitional fens, but its vegetative growth was fastest in wet meadows and alluvial habitats on highly organic humid soils. It produced more branches and larger leaves in alluvial habitats with open water, while it had enhanced generative reproduction in wet meadows. Species composition was less important than vegetation physiognomy. In less favorable habitat types, P. palustris prefers an escape strategy of linear growth. Internode length exhibited pronounced plasticity, increasing particularly in tall dense vegetation of lower altitude, whereas internode number remained fairly constant over various habitats. It is evident that both plastic low cost growth traits (internode elongation), and constant high cost traits (internode number) contribute to the P. palustris escape strategy under tall dense vegetation. Phenotypic plasticity enhances the potential of P. palustris to grow in a wide range of habitats and so increases plant fitness on regional scale.