Insect pests pose a global threat to crop yield. Biological control by natural enemies aims to reduce pest damage in a sustainable way. Cereal leaf beetles (CLB; Oulema spp.) are major pests in small-grain cereals. We studied the effect of natural enemies on CLB damage and its consequences on yield within its native distribution area in Europe. In exclusion cage experiments and by documenting a naturally occurring CLB damage gradient, we found that CLB damage reduced yield, but natural enemy action reduced the damage by CLB. Comparing exclusion and open treatments on artificially CLB-infested plants, plants accessible to natural enemies had 30% less leaf damage. CLB damage significantly affected yield parameters. Thousand grain weight was 22–29% less in maximum leaf damage scenarios. In the damage gradient field, maximal infestation reduced grain yield by 52%. However, maximal damage occurred only on a few plants and over small areas. In natural infestation cases, the number of CLB larvae per plant had a median of zero; nevertheless, there were more than 35 larvae on 10% of the plants. Patchiness explained 40% of CLB damage variance. Damage was unevenly distributed; as a result, thousand grain weight decreased only by 1.6% for 75% of the plants but by 18% for 10% of the plants. In the natural damage gradient, the estimated yield loss for the entire field was 16% due to CLB. Skewed CLB distribution may lead to perceptible yield losses locally, but natural enemies may limit overall damage to the crop.