The different responses of plant species to resource stress are keys to understand the dynamics of plant community in a changing environment. To test the hypothesis that nitrogen (N) increase would benefit N competitive species, rather than N stress-tolerant species, to compete with neighbours, we conducted an experiment with neighbour removal, N addition and soil moisture as treatments in an alpine grassland on the southeastern Tibetan Plateau. Both growths and competitive-response abilities (CRA, the ability to tolerate the inhibitory effects of neighbors) of Kobresia macrantha, Polygonum viviparum and Potentilla anserine in wet site were facilitated by N addition, conversely, both growths and CRA of Taraxacum mongolicum and Ligularia virgaurea were suppressed by N addition, indicating that the responses of CRA of target species under N addition were consistent with the N utilization strategies of them. Moreover, the facilitative effects of N addition on competitive-response abilities of Kobresia macrantha and Polygonum viviparum were not found at the dry site, illustrating that soil moisture can alter the changes of neighbour effects caused by N addition. Life strategy of dominant species in plant community on the undisturbed southeastern Tibetan Plateau may shift from N stress-tolerant to N competitive, if the N increases continuously.