Allelopathy is recognized as an important process in plant–plant interactions, but how it affects plant communities growing in competitive conditions has not been assessed. This article investigates whether the allelopathic effect of Festuca paniculata is modified by competition between target plants in subalpine grasslands. We hypothesized that plants growing in mixed stands will be more affected by allelochemicals than the same species in monoculture. At Lautaret pass (Northern French Alps), a pot experiment was designed. We used leachates from donor pots (Treatments: 1. Bare soil, 2. F. paniculata clipped, and 3. F. paniculata unclipped) to water target pots (Treatments: 1. Control (soil only), 2. Dactylis glomerata, 3. Agrostis capillaris, and 4. D. glomerata and A. capillaris). Target plants were cultivated during one growing season. The effects of leachates from donor pots and interspecific competition in target pots were evaluated by measuring the final biomass of plants. Soil fertility was controlled in all target pots by measuring NO3 −, NH4 +, N, and C % of the soil. Effect of target treatment under bare soil : Both D. glomerata and A. capillaris grew better in monocultures than in mixture. Effect of donor treatment on monocultures : Under bare soil, D. glomerata grew better than under F. paniculata leachates. By contrast, A. capillaris did not respond to donor pot treatment. Effect of donor treatment on mixtures: However, when both species were cultivated together under F. paniculata leachates, the biomass of D. glomerata was similar to that in monoculture under bare soil. Differences in sensitivity to allelopathy reversed the impact of interspecific competition: A. capillaris facilitated D. glomerata under allelopathy, which made allelopathy of F. paniculata on D. glomerata inefficient. The complexity of overlapping mechanisms of plant–plant interactions are highlighted by this semi-natural experiment. In subalpine grasslands, allelopathy not only limits the growth of neighboring plants, but it may also modify community assembly by affecting other plant–plant interactions such as competition. This study contributes to explore the way allelopathy interacts with other plant–plant interactions in natural systems.