Abstract Extreme precipitation events are becoming more intense and frequent due to climate change. This climatic shift is impacting the structure and dynamics of natural communities and the key ecosystem services they provide. Changes in species abundance under these conditions are thought to be mediated by functional traits, morpho‐physiological characteristics of an organism that impact its fitness. Future environmental conditions may, therefore, favour different traits to those in present‐day communities. After 6 years of manipulated precipitation levels, including drought (−50% of ambient precipitation), irrigation (+50% of ambient precipitation), and control (ambient precipitation), we measured five key functional traits (plant height, leaf dry matter content [LDMC], leaf thickness, specific leaf area [SLA], and leaf phosphorus concentration) in 586 individual vascular plants to study the effects of precipitation changes on community‐weighted functional traits. Additionally, we tested whether the precipitation change effects on the traits depend on the time of the growing season. As expected, reduced precipitation impacted community composition only for the late‐season timing, after the seasonal field mowing, but led to a significant change in all community‐level plant traits between season timings. Under drought, communities shifted towards shorter individuals with thicker but small leaves and lower phosphorous content. Overall, a combination of community reassembly and intraspecific variation contributed to community‐weighted differences between control and drought plots for plant height, SLA, and LDMC traits. Species turnover was the main driver of community‐weighted means (CWMs) shifts in all traits in the late‐season but SLA. Whereas all traits showed variations at the community level with drought, SLA and LDMC were the most responsive traits at the species level. Nevertheless, our results suggest underestimation of intraspecific variation due to sensitive species lower abundance under stress. No differences in CWMs of functional traits were observed between control and irrigated plots. Synthesis: Our findings suggest that functional trait composition of grassland communities may shift under climate change‐induced drought, depending on the growing season timings. Trait‐based attempts to predict ecosystem functioning must account for such temporal variation in community trait values.