Abstract Serpentine ecosystems are characterised by multiple environmental stressors: high levels of trace metals such as nickel (Ni), low availability of macronutrients and low water retention. These harsh environmental conditions exert a strong selective force on the vegetation, but their effect on community assembly processes and the functional trait composition remains unknown. In 26 plots on four serpentine sites on Lesbos Island (Greece), we measured six leaf functional traits related to resource acquisition and stress resistance on the 20 most abundant plant species. We quantified the proportion of variance explained by inter‐ and intraspecific trait differences and tested if individual species showed changes in trait values explained by soil Ni content. We investigated the adaptive value and the community level changes for each trait along the natural soil Ni gradient using a mixed model approach and functional diversity analyses. We tested the role of the abundant serpentine endemic and Ni‐hyperaccumulating species Odontarrhena lesbiaca in driving these patterns. Intraspecific variation explained by soil Ni content is smaller than 4%, and most of the variance is explained by interspecific differences in trait values. Most species do not show significant changes in trait values in response to soil Ni. At the community level, low specific leaf areas, small and thick leaves are selected on high Ni soils. Functional diversity analyses suggest a shift towards a stress tolerance syndrome (thick and small leaves with low SLA values) and an increase in functional diversity on Ni‐rich soils. However, these patterns are driven by the increasing abundance of O. lesbiaca. The endemic Ni hyperaccumulator has a stress tolerance strategy with small thick leaves and low SLA, while the community of broadly distributed species show an increase in trait values related to dominance and fast growth. Synthesis. Intraspecific variation in leaf trait responds little to soil metal toxicity. Endemic species harbour unique trait values compared to species with broad distribution which should justify their conservation as a priority.