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Abstract Mangrove‐saltmarsh ecotones are experiencing rapid alterations due to climate change and human activities, however, the ecological and morphological implications of these shifts remain largely unknown. This study systematically explores how interspecific interactions and herbivory influence the dominant wetland species, as well as the resultant morphological evolution and landscape configuration. To achieve this, we develop a new eco‐morphodynamic model that integrates hydrodynamics, sediment transport, bed‐level change, and vegetation dynamics. The novelty of the current model lies in newly incorporated modules to simulate biotic interactions between mangroves and saltmarshes, enabling exploration of eco‐morphodynamic feedback in mangrove‐saltmarsh ecotones in response to tidal flows and species interactions. Our results show that vertical growth rates of coexisting vegetation species are dominant factors in determining wetland dominance. When mangroves and saltmarshes exhibit comparable growth rates, mangroves typically become the dominant wetland species. Conversely, if mangroves grow more slowly than saltmarshes, they are unable to outcompete saltmarshes. Additionally, herbivory can fundamentally alter wetland dominance depending on herbivore food preferences. Our simulations further underline that saltmarsh‐dominated wetlands develop channel networks more extensively and rapidly than mangrove‐dominated systems. This pattern is also observed during species invasions, with invading saltmarshes extending channel networks, while invading mangroves inhibit ongoing network expansion. This study highlights the pivotal roles of relative growth properties and herbivory in driving ecotone development in respect to wetland dominance and channel network development at the intertidal scale.