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A decrease in habitat amount and connectivity causes immediate or delayed species extinctions in transformed landscapes due to reduced functional connections among populations and altered environmental conditions. We assessed the effects of present and historical grassland amount and connectivity as well as local habitat factors typical of the present landscape on the current species richness of grassland specialist and generalist plants and arthropods in grassland fragments. We surveyed herbaceous plants, ants, orthopterans, true bugs and rove beetles in 60 dry grassland fragments in Hungary. We recorded the area of the focal grassland, the slope and the cover of woody vegetation. By using habitat maps of the present and historical landscape, we calculated grassland amount and connectivity for four time periods covering 158 years (1858–2016). We found evidence for an unpaid extinction debt in specialist plants, suggesting that they have not come to equilibrium with the grassland amount and connectivity of the present landscape yet. This localised and typically long-lived group responded slowly to the landscape changes. Specialist arthropod taxa with short generation times responded much faster to habitat loss than plants and did not show an extinction debt. Generalist plants and animals adapted to a wide range of habitats were affected by the landscape-scale decline of grassland habitats. Despite decreased habitat connectivity, grassland fragments with dry environmental conditions and high environmental heterogeneity can sustain specialist plants in transformed landscapes. Unpaid extinction debt should be considered an early warning signal: Restoration of grassland connectivity is necessary to halt ongoing extinction processes. [ABSTRACT FROM AUTHOR]