Recovering biological diversity and ecosystem functioning are primary objectives of ecological restoration, yet these outcomes are often unpredictable. Assessments based on functional traits may help with interpreting variability in both community composition and ecosystem functioning because of their mechanistic and generalizable nature. This promise remains poorly realized, however, because tests linking environmental conditions, functional traits, and ecosystem functioning in restoration are rare. Here, we provide such a test through what is to our knowledge the first empirical application of the ‘response–effect trait framework’ to restoration. This framework provides a trait-based bridge between community assembly and ecosystem functioning by describing how species respond to environmental conditions based on traits and how the traits of species affect ecosystem functioning. Our study took place across 29 prairies restored from former agricultural fields in southwestern Michigan. We considered how environmental conditions affect ecosystem functioning through and independently of measured functional traits. To do so, we paired field-collected trait data with data on plant community composition and measures of ecosystem functioning and used structural equation modelling to determine relationships between environmental conditions, community-weighted means of functional traits and ecosystem functioning. Environmental conditions were predictive of trait composition. Sites restored directly from tillage (as opposed to those allowed to fallow) supported taller species with larger seeds and higher specific leaf area (SLA). Site age and fire frequency were both negatively related to SLA. We also found a positive relationship between soil moisture and SLA. Both trait composition and environmental conditions predicted ecosystem functioning, but these relationships varied among the measured functions. Pollination mode (animal pollination) increased and fire frequency decreased floral resource availability, seed mass had a negative effect on below-ground biomass production, and vegetative height increased decomposition rate. Soil moisture and fire frequency both increased while site age decreased above-ground biomass production, and site age and soil moisture both increased decomposition rate. Synthesis and applications. Our results suggest that both trait composition and environmental conditions play a role in shaping ecosystem function during restoration, and the importance of each is dependent on the function of interest. Because of this, environmental heterogeneity will be necessary to promote multiple ecosystem functions across restored landscapes. A trait-based approach to restoration can aid interpretation of variable outcomes through insights into community assembly and ecosystem functioning.