Invasion of the exotic annual grass Bromus tectorum into stands of the native perennial grass Hilaria jamesii significantly reduced the abundance of soil biota, especially microarthropods and nematodes. Effects of invasion on active and total bacterial and fungal biomass were variable, although populations generally increased after 50+ years of invasion. The invasion of Bromus also resulted in a decrease in richness and a species shift in plants, microarthropods, fungi, and nematodes. However, despite the depauperate soil fauna at the invaded sites, no effects were seen on cellulose decomposition rates, nitrogen mineralization rates, or vascular plant growth. When Hilaria was planted into soils from not-invaded, recently invaded, and historically invaded sites (all currently or once dominated by Hilaria), germination and survivorship were not affected. In contrast, aboveground Hilaria biomass was significantly greater in recently invaded soils than in the other two soils. We attributed the Hilaria response to differences in soil nutrients present before the invasion, especially soil nitrogen, phosphorus, and potassium, as these nutrients were elevated in the soils that produced the greatest Hilaria biomass. Our data suggest that it is not soil biotic richness per se that determines soil process rates or plant productivity, but instead that either (1) the presence of a few critical soil food web taxa can keep ecosystem function high, (2) nutrient loss is very slow in this ecosystem, and/or (3) these processes are microbially driven. However, the presence of Bromus may reduce key soil nutrients over time and thus may eventually suppress native plant success. ?? 2005 by the Ecological Society of America.