Land-use intensification is one of the main drivers threatening biodiversity in managed grasslands. Despite multiple studies investigating the effect of different land-use components in driving changes in plant biodiversity, their effects are usually studied in isolation. Here, we establish a full factorial design crossing fertilization with a combined treatment of biomass removal, on 16 managed grasslands spanning a gradient in land-use intensity, across three regions in Germany. Specifically, we investigate the interactive effects of different land-use components on plant composition and diversity using structural equation modelling. We hypothesize that fertilization and biomass removal alter plant biodiversity, directly and indirectly, mediated through changes in light availability. We found that, direct and indirect effects of biomass removal on plant biodiversity were larger than effects of fertilization, yet significantly differed between season. Furthermore, we found that indirect effects of biomass removal on plant biodiversity were mediated through changes in light availability, but also by changes in soil moisture. Our analysis thus supports previous findings, that soil moisture may operate as an alternative indirect mechanism by which biomass removal may affect plant biodiversity. Most importantly, our findings highlight that in the short-term biomass removal can partly compensate the negative effects of fertilization on plant biodiversity in managed grasslands. By studying the interactive nature of different land-use drivers we advance our understanding of the complex mechanisms controlling plant biodiversity in managed grasslands, which ultimately may help to maintain higher levels of biodiversity in grassland ecosystems.