Abstract Although urbanisation is one of the greatest threats to biodiversity, its effect on particular invertebrate groups remains ambiguous on local and landscape scales. We aimed to analyse the effect of urban grassland management on spiders (Araneae) and carabids (Coleoptera: Carabidae), as well as other local and landscape parameters. We investigated 27 grasslands of two different management intensities (‘extensive’: one to two late cuts with removal of biomass [n = 18]; ‘intensive’: three to five mulching cuts [n = 9]) in the city of Karlsruhe, Germany. Pitfall trapping and sweep netting were performed to sample carabids and spiders. Results indicate that urban grasslands in Karlsruhe are inhabited by species‐rich assemblages, including several species of conservation concern (cc). Latter remain mostly restricted to dry grassland. The number of total specimens and of those belonging to species of cc were negatively affected by intensive management. The number of specimens of species of cc further decreased with increasing humidity and in spiders, additionally, by vegetation height. Landscape factors had limited effects, and only isolation of meadows negatively influenced the species richness of carabids (total and of species of cc). Our results demonstrate that conservation of dry grasslands in urban areas is crucial for sustaining local arthropod communities. Dry urban grassland may also act as a refugium for species of cc and mitigate the global insect crisis on a local and regional scale. In conclusion, biodiversity‐friendly mowing regimes should be applied on a broader scale in urban areas and target especially dry grassland plots. In addition, increasing connectivity and permeability of the urban matrix assist the colonisation by species of cc.