Abstract Termites—one of the most abundant animal groups in tropical ecosystems—are vital in nutrient recycling, contributing significantly to maintaining ecosystem functioning. However, how selective they are in their litter food choice, and whether they prefer nutritious or less nutritious litter substrates, are still important unresolved questions. Here, we test the effect of litter traits on the removal of litter by fungus‐growing termites, a dominant group of macrodetritivores in the Serengeti‐Mara ecosystem. We used metal‐mesh litterbags to measure the mass loss of stem and leaf litter from 23 grass species after an incubation period of 61 days. Sheeting—soil deposits indicating termite presence—strongly increased with tannin and phenolic compounds, especially in leaf litter (R2 = 0.54), where highly aromatic species like Cymbopogon caesius and Bothriochloa insculpta exhibited the highest sheeting rates. Litterbags with sheeting displayed 66% higher mass loss on average compared to those without. Once termites had selected the substrate, mass loss increased consistently irrespective of litter traits. Quantifying the combined effects of sheeting frequency and differential mass loss, we found that fungus‐growing termites predominantly increased the mass loss of high‐nutrient litter. This was mainly due to additional mass loss in leaf litter, not stem litter, with tannin concentration being the primary predictor of enhanced overall decomposition by termites. This suggests termites ameliorate the otherwise adverse influence of plant secondary compounds on litter decomposition. Synthesis: Our results support the idea that fungus‐growing termites are generalists, as termites collected organic substrates with varying quality. The strong effect of phenolic compounds on sheeting rate implies that secondary compounds play an important role in termite substrate selection. The selective removal of substrates high in secondary compounds suggests fungus‐growing termites lift important constraints to microbial breakdown, potentially enhancing ecosystem‐level carbon and nutrient recycling rates. Termites play crucial roles in recycling organic matter across tropical biomes and our study highlights that the role of secondary compounds in their selection and detection in decomposition studies needs more attention