The influence of afforestation with cedars on field layer vegetation and on the germinable soil seed‐bank were investigated along a 60‐m transect merging from open grassland to sparse and dense canopy cover. A total of 132 species were found, 76 in the seed‐bank and 109 in the vegetation, with 53 species in common. Conifer cover was not found to be associated with a decrease in total number of species in the vegetation or seed‐bank, but the mean number of species in the vegetation, total cover in field layer vegetation and mean number of individuals in the seed‐bank decreased significantly from grassland to forest stands. The grassland seed‐bank was dominated by Saxifraga tridactylites and Veronica agrestis; the seed‐bank of plots of scattered cedars was dominated by Trifolium incarnatum ssp. molinerii; and that of dense cedar plantations was dominated by Campanula rapunculus. The number and cover of grassland species of field layer vegetation decreased in the forest, with respect to open grassland, and the same trend was found for density of individuals in the seed‐bank. It is concluded that grassland restoration by cutting cedars cannot rely on the presence of grassland species in the soil seed‐bank.