Global change and anthropogenic disturbance profoundly modify the quantity of litter accumulation, which potentially affects plant growth and population regeneration in grassland ecosystems. As the primary source of population regeneration in perennial grasslands, belowground bud banks are vital for regulating community dynamics and ecosystem functions in response to environmental changes and disturbances. However, the responses of belowground bud banks and their interactions with aboveground vegetation to litter accumulation in temperate grasslands remain poorly understood. We conducted a long-term (2011-2022) litter manipulation experiment in a temperate semiarid grassland and quantified bud density, shoot density, and the ratio of bud to shoot density (representing the meristem limitation index-MLI) at the plant community level and in different functional groups: rhizomatous and bunchgrasses. We found that bud density at the plant community level increased with litter removal in relation to litter accumulation. Litter removal significantly increased shoot density compared to ambient conditions and litter addition. The MLI was significantly higher with 100 % litter addition than under litter removal. While litter manipulation had no significant effects on the clonal traits of rhizomatous grasses, it markedly affected the bud density, shoot density, and MLI of bunchgrasses. These findings both underscore the importance of grassland management practices in reducing excessive litter accumulation to promote population regeneration via belowground bud banks and highlight the necessity of adopting functional group-specific approaches in grassland restoration and management.