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Summary: Protecting native biodiversity is a difficult prospect in extremely modified landscapes, especially where high‐impact exotic species are widespread. Using new data and a review of the literature, this paper comments on the use of livestock grazing to manage the invasive and highly combustible pasture grass species, Buffel Grass (Cenchrus ciliaris) and thereby help conserve fire‐sensitive Brigalow (Acacia harpophylla) vegetation in reserves in Queensland, Australia. We cite evidence that shows that grazing is a potentially useful management tool in such cases and its use can be compatible with the protection of both fire‐sensitive vegetation and other native plant species within the understorey. However, there are limitations in implementing grazing within conservation reserves including the lack of a clear understanding of the influence of grazing on biodiversity and resource condition. Importantly, we highlight secondary invasion by the exotic grass Indian Couch (Bothriochloa pertusa) as a key emerging threat that may undermine the biodiversity benefits gained by grazing in reserves. Grazing can be a useful tool for conservation management in particular scenarios, but the associated risks demand accompanying monitoring and reporting of positive and negative impacts to ensure the fundamental aim of biodiversity protection is being achieved. [ABSTRACT FROM AUTHOR]