Grazing by large herbivores is well-known to influence plant communities, while much fewer studies have been carried out on grazing effects on invertebrates. In Norway, some 2.2 million sheep graze on outlying pastures during summer, most of them in the alpine zone, but no study has reported the relative impact of sheep grazing on invertebrate communities relative to other environmental factors such as the plant community and altitude. A fully replicated landscape-scale experiment (2.7 km2) was performed with no, low (25 per km2) and high (80 per km2) sheep densities in an alpine habitat of Norway (1050–1300 m a.s.l.). The increased vulnerability hypothesis (H1) predicts that the more folivorous invertebrates, the higher the grazing pressure by sheep, as large herbivore grazing may stress the plants so they are more vulnerable to insect herbivory. The increased defence hypothesis (H2) predicts increased levels of general anti-herbivore defences, and thus a lower abundance of invertebrates with increasing sheep densities. Contrary to both predictions, no evidence was found that sheep grazing affected invertebrate richness, or abundance of folivorous, predatory or detritivore invertebrates – in a community dominated by Diptera and Hemiptera. Demonstrating an effect will always be a function of sample size, but at least our study shows that other environmental variables (such as plant species richness and functional plant richness) are more important determinants than sheep grazing for the selected invertebrate groups. Our study was short-term (first year of grazing) mainly designed to test specific hypotheses related to induced plant defences; long-term effects are probably owing to the impact sheep may have on vegetation composition, primary production, litter cover and soil properties.