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Summary In the past, insect diversity in grasslands showed a severe decline due to management intensification or abandonment. In this study, we investigate the long‐term influence of grazing and the potential for spatial patterns created by different grazing intensities to enhance insect diversity. In a long‐term experiment (2002–2011), three grazing intensities were applied to 1‐ha paddocks in a triplicate block design: moderate grazing ( MC ), lenient grazing ( LC ) and very lenient grazing ( VLC , since 2005). The experiment was conducted in a moderately species‐rich grassland at the edge of the Solling Uplands in Lower Saxony, Germany. Orthoptera (grasshoppers) and Lepidoptera (butterflies) on three 50‐m transects per paddock were counted in 2002–2004 and again in 2010 and 2011. Statistics were performed using linear mixed modelling. Grasshopper diversity measures (species richness and abundance) were significantly affected by grazing intensity; abundance increased from 2002 to 2011 more strongly in the LC than in the MC treatment. Butterfly species richness response to grazing intensity varied among years. Data from 2010 and 2011 did not reveal any advantage of the lowest grazing intensity ( VLC ) compared to the intermediate grazing intensity treatment ( LC ) in either insect group. Multiple regressions were used to investigate diversity patterns. Along with compressed sward height, spatial patchiness was important for grasshopper species richness and abundance as well as for butterfly species numbers. Butterfly abundance was mainly influenced by vertical sward height heterogeneity in addition to the significant effects of thistle abundance and number of nectar plant species. Synthesis and applications . Cattle grazing intensity affects the proportions and spatial heterogeneity of short and tall sward patches on pastures. The less mobile grasshoppers particularly benefitted from the structural modifications created by cattle at lenient grazing levels (stocking rate 1·14 SLU ha −1 , standard livestock unit ( SLU ) = 500 kg). In the final study years, areas with intermediate grazing intensity revealed high diversity indices and the most distinct patchiness, therefore a further reduction in grazing intensity is not recommended. This indicates that commercial livestock production may be compatible with conservation targets.