Livestock grazing is a major driver of ecosystem functions in drylands and would be expected to influence soil biota such as termites. We examined changes in soil chemistry and plant community composition on mounds constructed by the subterranean termite Anacanthotermes ahngerianus along a gradient in grazing intensity in an arid steppe in north-eastern Iran. The grazing gradient was represented by increasing distance from an area used by resting livestock, and plant and soil attributes measured within three adjacent microsites (termite mounds, non-mound controls, intervening annular zone surrounding the mounds). Values of soil EC; pH; exchangeable Ca, Mg, and Na; and total nitrogen and organic carbon were greatest in mound soils and declined from mounds to control microsites. Mounds were completely devoid of plants. Annular zones had three-times less cover than the control sites, but there were no differences in diversity or evenness. Electrical conductivity values were ten-times greater on mounds than controls close to resting sites, but the difference diminished rapidly with distance from resting sites. For all other soil and plant variables, differences between microsites were consistent across the grazing gradient. Increased grazing intensity was associated with increasing soil pH, EC and sand content, and reduced plant cover. Overall our study shows that the effects of termites on soil chemistry and plant cover varied little across the grazing gradient. Our results suggest that termite mounds may sustain their role as sites of enhanced soil nutrients under even high levels of grazing.