Abstract Phenolic compounds are key to plant defence, offering protection as antioxidants, UV shields, and antimicrobials. Their production is largely shaped by environmental conditions. It is believed that plants at lower elevations increase phenolic content to counter herbivory, while those at higher elevations rely on phenolics to manage abiotic stresses, such as climate variability. Microhabitat warming also affects phenolic levels, but responses differ, depending on broader climatic contexts: plants in warmer, lower‐elevation environments show limited adaptability, whereas high‐elevation plants demonstrate greater plasticity. Despite the importance of these environmental interactions, many small‐scale abiotic studies lack sufficient spatial replication across broader gradients like elevation or latitude, while large‐scale studies frequently overlook microscale factors. This study investigated the effects of macroclimate factors and microhabitat warming on phenolic production in Nardus stricta across five semi‐natural grassland sites (1546–1875 m a.s.l.) in Portugal's Serra da Estrela. Warming was simulated using open‐top chambers over two growing seasons, after which leaf samples were analysed for phenolic compounds, and soil nutrients were measured. The N. stricta plants at the highest elevation site contained significantly higher leaf flavonoid concentrations. Microhabitat warming led to a significant decrease in flavonoid concentrations, but only at the highest elevation site. These effects occurred independently of soil nutrient levels, suggesting direct thermal effects or stress responses might be involved. Our findings highlight the complex interactions between macro‐ and microenvironmental factors in shaping plant chemistry, underscoring critical considerations for plant resilience in the face of climate change. This understanding is essential for developing strategies to support plant and ecosystem adaptation to changing climates.