SUMMARYAlthough grasses infected by fungal endophytes often exhibit increased growth relative to uninfected plants, the results of infection may be manifested as decreased growth in plants growing under stressful conditions. A preliminary experiment compared perennial ryegrass (Lolium perenne L.) infected by Acremonium lolii Latch, Christensen & Samuels with uninfected plants grown at three soil moistures and three nutrient concentrations. Total biomass, tiller number, and relative tillering rate were significantly affected by nutrient concentration and moisture. Although major differences between infected and uninfected plants were not apparent, relative growth rates of infected plants were significantly greater than uninfected plants in three of nine treatment combinations. Interactions between infection and nutrient limitation were examined in seedlings and adults of perennial ryegrass and tall fescue (Festuca arundinacea Schreb., infected by A. coenophialum Morgan‐Jones and Gams). A significant nutrient × infection interaction for tall fescue seedlings indicated that, compared to uninfected seedlings, infected seedlings had greater biomass at the high nutrient level but a significantly lower biomass at the low nutrient level, suggesting a metabolic cost to the host due to competition with the fungus for nutrients or photosynthate. Infected perennial ryegrass seedlings had significantly more biomass at high and intermediate nutrient levels, but not at low nutrient levels. Although infection did not significantly affect total biomass in perennial ryegrass adults, in tall fescue adults the benefits of endophyte infection to host plants (recorded as greater biomass) became increasingly greater with increasing nutrient availability.