ABSTRACT Grasslands are one of the most widespread biomes on Earth. The interaction of UAV LiDAR with grasses and herbaceous plants is an infrequently covered area of research, apart from its utilisation for the estimation of above ground biomass. To evaluate the applicability of LiDAR for monitoring grassland vegetation, two model plots in the arctic-alpine tundra (Krkonoše Mountains, Czech Republic) were selected. Throughout the growing season, UAV LiDAR point clouds (800 points/m2) and multispectral imagery (9 cm) were acquired in monthly intervals, along with reference botanical and terrestrial LiDAR data. The study provides insight into the analysis of compact low-lying vegetation at the species level. A set of experiments was conducted focusing on the analysis of LiDAR information loss, vertical strata, and structural metrics computed over the grass species/communities. Random forest was used to determine the importance of metrics by out-of-bag permutation of predictors and to classify vegetation species using UAV LiDAR-based metrics, as well as image-based digital surface models alone and in fusion with multispectral data. The vertical distribution of the UAV LiDAR points varied significantly between species and throughout the growing season. Loss at the canopy bottoms was apparent, with the lowest points corresponding to dry grass matter rather than relief. Grasslands had the highest penetration capability at the start of the growing season. In terms of metrics, maximum canopy height was the most important. The multitemporal LiDAR-derived structural metrics were able to differentiate (F-1 score above 90%) all the shrubs/trees and dominant grass Calamagrostis villosa. Mixed and low-abundance species were indistinguishable. The overall accuracy scores in a 9 (27) cm grid reached 75.1% (78.1) and 63.5% (66.4) for Bílá louka meadow and Úpské rašeliniště bog, respectively. Fusing the LiDAR-derived features with multispectral imagery did not enhance the classification results apart from the delineation of shrubs and trees.