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Abstract The rapid loss of wetlands during the 20th century has caused a severe decline in the biota associated with these habitats. In Europe, the loss of wet grasslands has seriously affected breeding waders, whose numbers have halved in the past 50 years and remaining populations are facing fragmented, low quality habitats. To improve the remaining sites as breeding grounds for these birds, the exact habitat requirements of the species need to be known. Our study was carried out in Boreal Baltic coastal grasslands in Estonia, where land abandonment has been the main reason behind waders' population declines in the past decades. Hence, we focus on partially overgrown fields, aiming to ascertain habitat characteristics determining the breeding site selection of meadow birds, especially the endangered Southern Dunlin (Calidris alpina schinzii). We studied the breeding site selection of four wader species (Southern Dunlin, Common Redshank (Tringa totanus), Northern Lapwing (Vanellus vanellus) and Common Snipe (Gallinago gallinago)) in 23 coastal grasslands over two years. We analysed seven habitat characteristics which could influence the breeding habitat selection of these species. Our study demonstrates that breeding sites of all studied wader species are located closer to wet areas and coastline and further away from woodland. Also, the height of the ground level has an impact on the breeding probability, with lower areas favoured. Concerning the Southern Dunlin, our results show that on sites where the species was absent, suitable breeding sites, regarding the distance from woodland edge, were absent. Thus, reforestation of grasslands may be the key reason behind the poor population status of the species. We also demonstrated that proximity of reed beds did not influence the breeding site selection of waders – a result which contradicts current wet grassland management suggestions. Expanding the open landscape, maintaining a large quantity of wet features suitable for foraging and preventing overgrowth of coastline and lower parts of the meadow makes the habitat optimal for breeding waders. Concerning the growth of the population size and spatial distribution of the Southern Dunlin, removal of woodlands adjacent to grasslands is crucial. [ABSTRACT FROM AUTHOR]