Abstract Background Equine obesity is a growing concern. Much of the current management advice centres on dietary restrictions, including the removal or limitation of grazing. Little is known about the impact of these approaches on the welfare of the horse. Objective This study investigates the effect of two commonly used grazing systems advocated for the control of weight—the ‘strip‐grazing’ and the ‘track’ systems—on the behaviour and welfare of outdoor‐living ponies. Study design A within‐subject cross‐over experimental design with four groups of pasture‐kept ponies experiencing each system for 4 weeks in a random order. Methods Time budgets and behavioural indicators of welfare were measured using 24‐h electronic surveillance, morphometric parameters including weight, body condition score and cresty neck score were measured weekly and activity levels were tracked. The effect of grazing system on movement and behaviour was tested using a general linear model. Results Ponies moved more [median (IQR) % time spent moving, track: 3.23% (2.08%), strip: 2.02% (0.90%); p = 0.001] and travelled a greater distance [median (IQR) metres/24 h, track: 7013.47 m (1761.49 m), strip: 5331.91 m (494.16 m); p < 0.001] and engaged in less overt agonistic behaviour on the track system compared with the strip system [median (IQR) prevalence per hour; track: 0.14 (0.30), strip: 0.21 (0.37) p = 0.02]. Main limitations A relatively short time period of exposure to each grazing system. Conclusions Ponies on strip systems moved less and exhibited increased agonistic interactions compared with the track system, maybe as a result of a perceived reduction in space or concentration of resources, although the accessible areas were matched. These results suggest that there may be physical as well as psychological health benefits to the track system.