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Soil temperature and moisture are important regulators of a broad range of biotic and abiotic processes in terrestrial ecosystems. Vegetation can, in turn, play a role in regulating soil microclimate, which creates potential for powerful and interactive feedbacks from soil and vegetation on the atmosphere. Although the regulatory effect of vegetation on soil microclimatic conditions has been quite extensively and empirically assessed, most studies have determined the net effect of intact woody vegetation versus bare ground. However, for other plant functional groups we lack a clear understanding of their role and any climate‐context dependency in controlling microclimatic conditions. We investigated the role of three major plant functional groups – graminoids, forbs and bryophytes – in regulating soil microclimate in semi‐natural alpine grasslands. Using a fully factorial above‐ground biomass removal experiment, we assessed the role of these plant functional groups in regulating soil temperature amplitude, soil moisture, and number of freezing days. The experiment was replicated across orthogonal temperature and precipitation gradients in Norway to assess whether the effects of functional group abundance varied with climate. The effect of plant biomass on soil microclimate varied among functional groups across the climatic gradients. Bryophytes reduced growing season soil temperature, whereas graminoids and forbs did not (0.5ºC compared to 0ºC), and with a stronger effect in colder climates at higher elevations and on days with high solar radiation. Bryophyte biomass further reduced the number of soil freezing days at boreal and sub‐alpine sites. Finally, graminoid biomass partly explained variation in soil moisture: soils dried more under graminoids at drier sites. Our findings highlight that functional group identity plays a key role in regulating soil microclimate in alpine grasslands across seasons. The strong effect of bryophytes on soil temperature points to their importance in the plant community for a variety of ecosystem functions, some of which may be indirectly vulnerable to future warming via biomass reductions of bryophytes. [ABSTRACT FROM AUTHOR]