It has been widely reported that shredders play an important role in leaf decomposition, especially in continental temperate streams. However, the paucity of shredders in many oceanic island streams leads to a greater contribution of microbes to litter decomposition in these streams. In this study, we investigated the importance of shredder presence and density (three levels) and leaf litter identity (Alnus glutinosa, Clethra arborea and Acacia melanoxylon) on leaf litter decomposition in one stream located in the Azores Archipelago. Coarse and fine mesh bags were used to allow natural colonisation of leaf litter by benthic macroinvertebrates or to exclude macroinvertebrates respectively. Treatments with one and three shredders were accomplished by enclosing one or three shredders in the fine mesh bags. Rates of litter decomposition differed significantly among shredder density treatments only for A. glutinosa and C. arborea. Decomposition rates were significantly faster for the natural within-stream shredder density treatment than for other shredder treatments. Shredder density differed significantly among litter species, being higher in A. glutinosa than in C. arborea and A. melanoxylon. The results indicate that when shredders are present at high densities in oceanic island streams they can substantially contribute to the decomposition of high-quality leaf litter, whereas the decomposition of hard leaf litter is mostly performed by the microbial community.