Abstract Plant community may provide products and services to humans. However, patterns and drivers of community stability along a precipitation gradient remain unclear. A regional‐scale transect survey was conducted over a 3‐year period from 2013 to 2015, along a precipitation gradient from 275 to 555 mm and spanning 440 km in length from west to east in a temperate semiarid grassland of northern China, a central part of the Eurasian steppe. Our study provided regional‐scale evidence that the community stability increased with increasing precipitation in the semiarid ecosystem. The patterns of community stability along a precipitation gradient were ascribed to community composition and community dynamics, such as species richness and species asynchrony, rather than the abiotic effect of precipitation. Species richness regulated the temporal mean ( μ ) of aboveground net primary productivity (ANPP), while species asynchrony regulated the temporal standard deviation ( σ ) of ANPP, which in turn contributed to community stability. Our findings highlight the crucial role of community composition and community dynamics in regulating community stability under climate change.