By controlling their reproductive strategies, plants strike a balance between generating genetic diversity or maintaining stability, promoting long-term survival in a range of environmental conditions. The liverwort Marchantia polymorpha propagates clonally through vegetative gemmae or via sexually generated spores, but our understanding of the genetic pathways underpinning reproductive decision-making is limited. GRAS transcriptional regulators are highly conserved proteins across land plants, with diverse functionality in stress and development. Here, we discover a central role for the SCLA-type transcription regulator MpGRAS7 in both stress signalling and reproduction in Marchantia. MpGRAS7 is highly expressed in gemma cups and gametangiophores and is activated in response to Far Red (FR) light and abscisic acid (ABA) environmental cues. Genetic dissection further suggests MpGRAS7 is required to maintain gemma dormancy, gemma cup frequency, and FR-induced gametangiophore development. The sequence conservation and expression patterns of MpGRAS7 orthologs in flowering plants hints towards the broader function of SCLA-type GRAS proteins in stress-regulated developmental transitions in plants.