Climate change is expected to cause an increase in the frequency and intensity of drought events. Over two years we investigated the effects of experimentally imposed drought on intensively managed grassland communities (5 m x 6 m plots) of varying richness (1, 2 and 4 species), and comprising four species (Lolium perenne L., Cichorium intybus L., Trifolium repens L., Trifolium pratense L.). In each year a summer drought period of nine weeks with complete exclusion of precipitation was simulated, inducing severe drought stress at Reckenholz (Zürich, Switzerland), and extreme drought stress at Wexford (Ireland). Mean yield and plot-to-plot variance of yield were measured across harvests during drought and after a subsequent post-drought recovery period. At both sites, there was a positive relationship between species richness and yield under both the rainfed control conditions and under drought. At both sites, four-species communities had lower plot-to-plot variance of yield compared to monoculture or two-species communities under both rainfed (-49% smaller standard deviation) and drought conditions (-24%), which demonstrates higher yield stability in four-species communities. At the Swiss but not the Irish site, a high degree of species asynchrony could be identified as a mechanism underlying increased temporal stability in four-species communities