Abstract Plant dwarfism, a syndrome characterised by a significant reduction in plant height and organ size, is a widely observed pattern of stress‐tolerant life‐form evolution that results from local adaptation to harsh environmental conditions. The drivers of assemblage‐level dwarfism have primarily been attributed to abiotic factors, such as low temperature, aridity, poor soil fertility or frequent fires. While biotic factors such as grazing pressure from herbivores can contribute to the establishment of plant dwarfism, these factors have rarely been tested at assemblage levels. Focusing on a dwarf plant assemblage comprising over 80 taxa on a small continental island in Japan with a high deer density, we hypothesised that historical deer grazing could also be a factor contributing to the large‐scale convergent evolution of dwarfism. To test this hypothesis, we measured the size of 1908 individual plants of 40 taxa pairs, comprising both palatable and unpalatable pairs from the island and their counterpart taxa from neighbouring regions, and sought to assess which factors (i.e. low solar radiation, estimated divergence time, low nutrient conditions and grazing pressure from deer) may have contributed to the formation of the dwarf plant assemblage on the island. We also performed genetic analysis to infer the time frames for the establishment of dwarf taxa. Statistical analyses revealed that plant size was significantly reduced mainly among the palatable taxa growing on the island, with preferential grazing by deer being identified as the most significant factor influencing plant size. Furthermore, genetic analyses revealed that dwarf ecotypes may have evolved over tens of thousands of years. Synthesis: To the best of our knowledge, this study is the first to demonstrate that interactions with herbivores can shape the assemblage‐level convergence of plant dwarfism. These findings enhance our current understanding of the formation of plant functional diversity.