Plant litter dynamics are sensitive to grassland productivity and the spatial heterogeneity of plant community. In this study, we investigated the effects of litter leachates on plant community characteristics using three plant species that represent different successional stages of alpine grasslands located on the Qinghai-Tibetan Plateau (QTP). We tested four concentrations of leachates (0, 50, 100, and 200 g L^–1) from Kobresia setchwanensis, Elymus nutans, and Ligularia virgaurea. The leachates from the three plant species generally responded similarly, but the responses to the varying concentrations were significantly different. Addition of litter leachates negatively impacted the aboveground biomass and species richness. The Shannon-Wiener diversity index was positively correlated with the litter leachate addition. The effects of the litter leachate's addition on plant functional groups varied—grasses were inhibited, forbs and legumes were promoted, and sedges were not significantly affected. This study demonstrates that litter leachates are a critical determinant of species diversity, grassland productivity, and community structure in QTP alpine grasslands.