We investigated the effects of realistic variation in plant species and functional group composition, with species occurring at realistic abundances, on ecosystem processes in exoticdominated California grassland communities. Progressive species removals from microcosm communities, designed to mimic nested variation in diversity observed in the field, reduced grassland production, resistance to intentional invasions, and resistance to natural colonization by new species. Three lines of evidence point to the particular importance of intensified competition within a single functional group-late-active forbs- in explaining the observed effects of realistic species loss order on community resistance. First, reduced success of naturally colonizing species in more diverse assemblages was dominated by declining colonization by late-active forbs. Second, increasing late-active forb biomass appeared to reduce the biomass of intentionally introduced yellow starthistle (Centaurea solstitialis, a lateseason forb) both within and across diversity levels. Finally, starthistle addition reduced biomass of resident late-season forbs but not of any other functional group. Increasing diversity increased light levels and soil moisture availability in spring and summer, providing a proximate mechanism linking our realistic species loss order to decreased community resistance. Starthistle addition reduced light and soil moisture availability but not N across richness levels, mirroring the apparent effects of the additional late-active forb species present in higher diversity treatments. Species losses that entail the early loss of whole or key functional groups could, through mechanisms like those we explore, have greater ecosystem consequences than those suggested by randomized-loss experiments.