The effects of temperature regime, transfer between temperature regimes, and cutting frequency on the competitive interaction of ryegrass and paspalum over 24 weeks were analysed using the de Wit (1960) model of two-species competition. Because of more rapid establishment ryegrass was initially the dominant grass under all treatments. At high (24°C day/18°C night) temperatures, paspalum became the dominant grass where cutting was frequent (2-week intervals), but ryegrass remained dominant where cutting was infrequent (4-week intervals). At low temperatures (14°C day/8°C night) ryegrass was strongly dominant, particularly with infrequent cutting. When transferred from high to low temperatures at 12 weeks ryegrass rapidly increased its competitive power relative to paspalum. Because of marked suppression at low temperature under infrequent cutting paspalum showed a slow increase in competitive power after transfer from 18w.to high temperature, but under frequent cutting paspalum became dominant by the end of the experiment. Cutting more frequently and closely at temperature transfer reduced the dominance of ryegrass and aided the increase in competitive power of paspalum after transfer from low to high temperature. Increase in competitive power was generally associated with an increase in the number of tillers per plant. Ryegrass showed an increase in yield per tiller with decreasing ratio of ryegrass in the sward, irrespective of its competitive situation. The competitive interaction of ryegrass and paspalum produced transgressive overyielding, particularly where a change of dominance between the grasses was emphasised by transfer between temperature regimes and frequent cutting. Differing growth rhythms and enhanced light use efficiency appeared to be the important causes of transgressive overyielding. It is concluded that realisation of the higher yield and stability of ryegrasspaspalum mixtures requires particular environmental and management conditions.