ABSTRACTMixed‐species forestry is a promising approach to enhance productivity, increase carbon sequestration, and mitigate climate change. Diverse forests, composed of species with varying structures and functional trait profiles, may have higher functional and structural diversity, which are attributes relevant to a number of mechanisms that can influence productivity. However, it remains unclear whether the context‐dependent roles of functional identity, functional diversity, and structural diversity can lead to a generalized understanding of tree diversity effects on stand productivity. To address these gaps, we analyzed growth data from 83,600 trees from 89 species across 21 young tree diversity experiments spanning five continents and three biomes. Results revealed a positive saturating relationship between tree species richness and stand productivity, with reduced variability in growth rates among more diverse stands. Structural equation modeling demonstrated that functional diversity mediated the positive effects of species richness on productivity. We additionally report a negative relationship between structural diversity and productivity, which decreased with increasing species richness. When partitioning net diversity effects, we found that selection effects played a dominant role in driving the overall increase in productivity in these predominantly young stands, contributing 77% of the net diversity effect. Selection effects increased with diversity in wood density. Furthermore, acquisitive species with lower wood density and higher leaf nitrogen content had higher productivity in more diverse stands, while conservative species showed neutral to slightly negative responses to species mixing. Together, these results suggest that combining acquisitive with conservative species allows acquisitive species to drive positive selection effects while conservative species tolerate competition. Thus, contrasting resource‐use strategies can enhance productivity to optimize mixed‐species forestry, with potential for both ecological and economic benefits.