Overgrazing largely causes biodiversity loss and land degradation in drylands. Studying the relationship between multiple biodiversity (MBD) across trophic levels and ecosystem multifunctionality (EMF) is becoming a frontier in ecosystem science. Here, by synthesizing the impacts of grazing on MBD and EMF in drylands, we found that the response of MBD depends on the interactions of grazing intensity, livestock type and aridity. MBD responds to grazing intensity following a unimodal pattern in the relatively humid areas, but a negatively linear response in the dry areas. Moreover, the MBD mediates the response of EMF to grazing. Therefore, we suggest a sustainable grassland management considering grazing practices and local climate to maintain a high-level of EMF and MBD conservation in drylands.