Abstract Many of the disturbance‐sensitive, late successional plant species in grasslands respond to arbuscular mycorrhizal (AM) fungi more positively via growth and establishment than plants that readily establish in disturbed areas (i.e. early successional species). Inoculation with AM fungi can therefore aid the establishment of late successional species in disturbed areas. If the differential benefit of AM fungi to late versus early successional plants is context‐dependent, however, this advantage could be diminished in high phosphorus (P) post‐agricultural soils or in future climates with altered precipitation. In this greenhouse experiment, we tested if late successional plant species are less plastic in their reliance on AM fungi than early successional plants by growing 17 plant species of different successional status (9 early and 8 late successional) in full factorial combinations of inoculated or uninoculated with AM fungi, with ambient or high P levels, and with low or high levels of water. AM fungi positively affected the biomass of the 17 grassland plant species, but across all environments, late successional plant species generally responded more positively to AM fungi than early successional plants species. AM fungal growth promotion and change in below‐ground biomass allocation was generally diminished with P fertilizer across all plant species, and while there was significant variation among plant species in the sensitivity of AM fungal responsiveness to P fertilization, this differential sensitivity was not predicted by plant successional status. The role of AM fungi in plant growth promotion was not generally altered by variation in watering, however late successional plant species allocated a greater proportion of their biomass below‐ground in response to AM fungi in low versus high water conditions. Synthesis. Overall greater responsiveness to arbuscular mycorrhizal (AM) fungi by late successional species is consistent with an important role of AM fungi in plant succession, even while AM fungi are less impactful overall in high P soils. However, the increase in responsiveness of below‐ground allocation of late successional species to AM fungi in low water conditions suggests that successional dynamics may be more dependent on AM fungi in future climates that feature greater propensity for drought.