Ecosystem engineers alter their environment often benefiting their own survival and growth yielding self-reinforcing feedbacks. Moreover, these habitat modifications have been found to facilitate recruitment of conspecifics for some species, while for others engineering inhibits recruitment. Whether dune grasses facilitate or inhibit recruitment of conspecifics is yet unknown. Here, we investigated how habitat modification by European marram grass (Ammophila arenaria) through embryonic dune development affects recruitment from seeds and marine dispersed rhizome fragments. Specifically, we tested at three locations with different dune morphologies how habitat modification affected natural seed and rhizome presence and shoot emergence from plots in which seeds or rhizome fragments were added. In addition, we investigated how sediment burial (i.e., the main effect of habitat modification by dune grasses) affected germination and emergence in a controlled experiment. Results show that regardless of habitat modification or beach width, seeds and rhizomes were absent in natural conditions. Habitat modification negatively affected shoot emergence from seeds (8 × less) and rhizomes (4 × less) and was negatively related to sediment dynamics. Furthermore, fewer seedlings were found with higher elevations. In controlled laboratory conditions, the highest seedling emergence was found with slight burial (0.5-3 cm); both germination and seedling emergence decreased as seeds were buried deeper or shallower. Overall, habitat modification by marram grass negatively affects recruitment of conspecifics through increased sediment dynamics and elevation. Consequently, storm events or eradication programs that include removal of adult vegetation—which leads to an unmodified system—might benefit new recruitment from seeds or clonal fragments.