Medium-sized kangaroo rats (Dipodomys spp. Gray) function as keystone species in the dynamics of desert bunchgrasses. We tested the hypothesis that kangaroo rat graminivory leads to reduced grass growth and inflorescence production, and that kangaroo rat grass consumption reflects their preferences for open microhabitats. We excluded kangaroo rats from grasses, and measured tiller loss, leaf and tiller growth and inflorescence production. We recorded the extent of tiller loss in grasses varying in tussock size or the extent of surrounding cover. Consumption of tillers by kangaroo rats was extensive, peaking in late summer. Grasses protected from kangaroo rat graminivory showed elevated leaf and tiller growth and inflorescence production. Grass tussocks protected by surrounding vegetation or large grass tussocks suffered lower graminivory than tussocks in the open or small tussocks. Our data demonstrate that the mechanism of the keystone role of kangaroo rats is through direct graminivory. We hypothesize that kangaroo rat graminivory may contribute to the persistence of desertified shrublands by limiting grass recruitment and abundance. Medium-sized kangaroo rats prefer open microhabitats and increase in abundance as such microhabitats increase, suggesting a positive feedback, with kangaroo rats increasing in abundance in overgrazed, desertified landscapes, and then contributing to their persistence through graminivory. © 2009 Elsevier Ltd. All rights reserved