Livestock grazing can alter ecosystem structure, functions, and services across diverse biomes, with grazing intensity being a key factor affecting grassland function. Although the effects of grazing on plant and soil properties have been extensively studied, the effects of grazing intensity on biodiversity and ecosystem multifunctionality (EMF) remain largely unexplored. Therefore, this study addresses this gap using 28 indicator variables from a well-controlled yak grazing intensity experiment in alpine meadows on the eastern Tibetan Plateau. The results showed that aboveground diversity (calculated using plant species richness and insect diversity) exhibited a hump-shaped and significant response to increasing grazing intensity, multidiversity (whole-ecosystem biodiversity) and belowground diversity (calculated using nematode richness and microbial diversity) showed no significant response, and EMF significantly declined. Grazing decreased carbon and nitrogen cycling indices (calculated by carbon and nitrogen in plants and soils), but did not affect phosphorus cycling. Structural equation modelling indicated that EMF was directly affected by grazing intensity and belowground diversity (i.e., nematode and fungal diversity), rather than by multidiversity, aboveground diversity, and plant pathogens. Grazing-induced decreases in plant pathogens showed no direct or indirect effects on EMF but increased multidiversity and aboveground diversity. Overall, our results highlight the critical role of conserving belowground diversity in promoting and maintaining multifunctionality in grazing pastures on the Tibetan Plateau.