Sheep grazing was investigated as an alternative to traditional management of meadows in the Krkonoše Mts. Until the second World War these meadows were mown in mid-summer and grazed by cattle for the rest of the season. Subsequent abandonment of the meadows has resulted in decreasing species richness. Degradation phases of the former communities have been replacing the original species-rich vegetation. Significant changes were apparent six years after the introduction of sheep grazing. In grazed plots the proportion of dominant herbs (Polygonum bistorta and Hypericum maculatum) decreased and grasses (Deschampsia cespitosa, Festuca rubra, Agrostis capillaris, Anthoxanthum alpinum) increased. The increase in grasses was positively correlated with an increase in several herbs. The proportion of some herbs increased despite being selectively grazed (Adenostyles alliariae, Melandrium rubrum, Veratrum lobelianum). Any losses caused by grazing of mature plants were probably compensated by successful seedling establishment. Cessation of grazing resulted in significant changes in vegetation within three years. The cover of nitrophilous tall herbs and grasses (e.g. Rumex alpestris, Holcus mollis, Deschampsia cespitosa, Geranium sylvaticum) increased in the abandoned plots. In the plots grazed for nine years cover of species-rich mountain meadow species increased (e.g. fine-leaved grasses, Campanula bohemica, Potentilla aurea, Viola lutea, Silene vulgaris). The main conservation risk is the expansion of a competitive species with low palatability, Deschampsia cespitosa. This species can be suppressed by a combination of grazing and mowing. In order for grazing to be effective, the number of sheep should be proportional to meadow production. This may be difficult to maintain as production is variable and is impossible to predict at the beginning of a growing season. A large part of the biomass may thus remain intact in some years. Negative effects of grazing may be, at least partly, eliminated by a combination of cutting and grazing.