Abstract Plant essential macronutrients like nitrogen (N) and phosphorus (P) can limit savanna tree growth and are important determinants of savanna vegetation dynamics, along with rainfall, fire and herbivory. How nitrogen and phosphorus shape tree‐grass competition and their coexistence remain unclear, hindering our ability to predict how savannas may respond to altered nutrient cycling. Here, we evaluate (1) if trees and grasses respond differently to N versus P availability, or (2) if grasses are more competitive in low nutrient environments while trees are more competitive in high nutrient environments. To do this, we grew saplings of 6 tree and 1 grass species from the Kruger National Park, South Africa, for 16 weeks under fully factorial nutrient and competition treatments (with/without competitors, low/high rate of N supply and low/high rate of P supply) under a watering regime designed to mimic wet season rainfall in a mesic savanna. Trees and grasses foraged most aggressively for nitrogen and allocated biomass differently depending on nitrogen availability. Overall, tree growth decreased in competition with grass, even in high nutrient environments where they grew faster. Grasses were always better below‐ground competitors, utilising aggressive nutrient foraging strategies, including high root phosphatase activity in response to nitrogen and large root biomass allocation. Synthesis. In low nutrient environments (e.g. on nutrient‐poor sandy soils), nutrients may limit tree growth. Nutrient rich environments enable tree growth, but grasses continue to compete effectively with trees. Understanding what this means for ecosystem responses to nutrient availability is not trivial, especially in the context of fire and herbivory. However, it is clear that soil nutrients likely affect tree and grass growth and competition in savannas, which suggests that future changes in nutrient cycling, such as N deposition, may have important effects on savanna vegetation.