AbstractThis study examined tree species diversity, distribution, and community differentiation patterns along an elevation gradient in pine–oak forest in the Sierra Norte mountains in Oaxaca, Mexico. Pine and oak are ecologically and economically valuable both locally and globally, but their dynamics are poorly understood in seasonally dry montane forests. This is a biome that is both widespread, with high human use and importance, and widely understudied. The community‐managed forest we studied contained high levels of tree diversity (32 total species), with especially high levels of oak (10 species) and pine (eight species) diversity compared to other pine–oak forests in Mexico. Tree communities in the study area demonstrated high levels of species turnover across sites, especially at mid and low elevations, as well as high levels of oak species coexistence within communities, with a mean of three oak species per 1000 m2. We identified three distinct tree vegetation types using multivariate ordination and cluster analyses and found that both tree distributions and community assemblages are primarily differentiated by elevation, but also by soil type, topography, and likely successional disturbance from historical land use. Oak communities in the study area followed patterns of phylogenetic overdispersion with species from different sections (red and white) co‐occurring more frequently than species from the same section, and demonstrated differences in reported reproductive phenology, with coexisting species alternately fruiting in rainy and dry seasons. This differentiation in both oak species' environmental associations and in fruiting phenology has important management and conservation implications as Mexico becomes more arid with climate change. This study also provided key information for local management as different forest types should have different silvicultural management regimes, as well as essential baseline data useful for a broader theoretical understanding of how closely related species coexist in communities.