Grasslands in Europe are critically important to the biodiversity of agricultural landscapes. This chapter summarizes the conditions that facilitate biodiversity in permanent and semi-natural (i.e. managed) grasslands in temperate climate, with a particular focus on phytodiversity. The chapter exemplifies and explains losses in the biodiversity of managed grasslands in recent decades. It describes some of the main factors influencing biodiversity, leading to discussion of appropriate management measures and how these might be integrated into livestock production systems. Finally, the role of agri-environment schemes in preserving grassland biodiversity is considered. It is observed that the development of livestock systems is at risk of being decoupled from the grassland resources, and it is concluded that a more holistic approach to grassland management is necessary.