Local ecological communities represent the scale at which species coexist and share resources, and at which diversity has been experimentally shown to underlie stability, productivity, invasion resistance, and other desirable community properties. Globally, community diversity shows a mixture of increases and decreases over recent decades, and these changes have relatively seldom been linked to climatic trends. In a heterogeneous California grassland, we documented declining plant diversity from 2000 to 2014 at both the local community (5 m(2)) and landscape (27 km(2)) scales, across multiple functional groups and soil environments. Communities became particularly poorer in native annual forbs, which are present as small seedlings in midwinter; within native annual forbs, community composition changed toward lower representation of species with a trait indicating drought intolerance (high specific leaf area). Time series models linked diversity decline to the significant decrease in midwinter precipitation. Livestock grazing history, fire, succession, N deposition, and increases in exotic species could be ruled out as contributing causes. This finding is among the first demonstrations to our knowledge of climate-driven directional loss of species diversity in ecological communities in a natural (nonexperimental) setting. Such diversity losses, which may also foreshadow larger-scale extinctions, may be especially likely in semiarid regions that are undergoing climatic trends toward higher aridity and lower productivity.