Mowing is a crucial management strategy for conservation and restoration of semi‐natural grasslands. In the past decades, dominant mowing methods have changed from manual to mechanical, using heavy machines causing soil compaction. Whereas the negative effects of compaction are well understood in agriculture and forestry, they have received little attention so far in nature management. This study aims to investigate the effects of compaction on soil quality, arbuscular mycorrhizal fungal communities, and survival of a target plant species. We subjected seven grasslands to three contrasting mowing types: manual mowing with a brush cutter, softtrack mowing—designed to minimize soil compaction—and tractor mowing. We compared compaction, soil properties, and arbuscular mycorrhizal communities among the types. Additionally, we experimentally subjected intact grassland sods containing Devil's bit scabious (Succisa pratensis Moench), a target species of grassland conservation, to compaction levels corresponding to the three mowing types. Subsequently, we assessed plant survival. We found that soil compaction, soil nutrient availability, and toxic soil elements were significantly higher in the softtrack‐ and tractor‐mown parts of grassland sites compared to the manually mown parts. Also, the arbuscular mycorrhizal community composition differed significantly among mowing types, with the largest differences between “manual” and “tractor.” Succisa pratensis survival significantly decreased by 43 and 71% on the short term and by 71 and 86% on the longer term with increasing compaction. Consequently, mowing‐associated soil compaction compromises nature management targets via at least four mechanisms: nutrient enrichment, soil toxicity, changes in arbuscular mycorrhizal communities, and decreased survival of the target plant species.