Understanding whether land use intensification causes regime shifts is of key importance for management, particularly if these shifts are associated with thresholds separating different ecosystem states and with hysteretic dynamics. Here we use a unique, long-term grassland database to identify thresholds in the response of 16 ecosystem functions and the diversities of 21 taxa to land use intensity. We show that aboveground diversity (5 of 10 taxa), shoot biomass and soil N retention showed threshold responses to land use intensity, i.e., abrupt changes between extensively and intensively managed grasslands. Time-series analysis revealed that ecosystem functions showed hysteresis around the threshold, while diversity did not. Shifting back to the functioning seen in extensively managed grasslands may therefore require larger reductions in land use intensity than shifting to the high intensity state. Identifying such thresholds along land use gradients is critical to prevent ecosystem degradation and conserve biodiversity and ecosystem functions.