Phenotypic plasticity facilitates species persistence across resource gradients but may be limited in low-resource environments requiring resource conservation. We investigated the tradeoff between trait plasticity and resource conservatism across a biome boundary characterized by high turnover in nutrient and light availability, and whether this contributes to the maintenance of alternative stable states. Differences in plasticity were determined by comparing species' leaf and foliar nutritional trait responses to light, represented by leaf area index (LAI), and soil nutrient availability across forest-shrubland boundaries in South Africa. Although forest had higher LAI and soil nutrient availability than shrubland, forest species experienced greater resource variation. With increasing LAI and nutrient availability, forest species increased their leaf size, specific leaf area and leaf area/stem length, and decreased their foliar [N] and [K]. Although these responses are indicative of plasticity, shrubland species appeared to lack plasticity as evidenced by limited trait variation with environmental heterogeneity. Inhabiting diverse light environments imposed by forests probably selects for plasticity, whereas light-saturated, fire-prone, nutrient-poor environments that select for conservative leaf traits and below-ground investments compromise plasticity in shrubland species. This pattern suggests a tradeoff between trait plasticity and resource conservatism, which may support the stability of alternative vegetation states.