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Ongoing Arctic greening can increase productivity and reindeer pasture quality in the tundra. However, greening may also entail proliferation of unpalatable species, with consequences for pastoral social-ecological systems. Here we show extensive greening across 20 reindeer districts in Norway between 2003 and 2020, which has reduced pasture diversity. The allelopathic, evergreen dwarf-shrub crowberry increased its biomass by 60%, with smaller increases of deciduous shrubs and no increase in forbs and graminoids, the most species rich growth forms. There was no evidence for higher reindeer densities promoting crowberry. The current management decision-making process aims at sustainable pasture management but does not explicitly account for pasture changes and reduced diversity. Large-scale shifts towards evergreening and increased allelopathy may thus undermine the resource base for this key Arctic herbivore and the pastoral social-ecological system. Management that is sensitive to changes in pasture diversity could avoid mismanagement of a social-ecological system in transition.