A major challenge for livestock farming systems (LFSs) is to reconcile production with the management of natural resources, especially biodiversity and ecosystem services. Based on a review of research conducted on grassland- and rangeland-based LFSs, this paper addresses this challenge by analysing biodiversity as a product of and a key resource for LFSs. Although most studies reveal antagonisms between biodiversity and production, our findings show that it is possible to move towards synergies. The literature review sheds light on five points: (i) moving beyond an antagonistic view of biodiversity and production by considering biodiversity as a resource requires new criteria for biodiversity categorization from a taxonomic view to a functional one; (ii) functional biodiversity (both domestic and wild) considered as a resource provides beneficial properties (e.g. stability and resilience) to LFSs; (iii) links between production and biodiversity cannot be simply summarized as having a negative impact of production intensity as management practices have various impacts on the different components of biodiversity; (iv) impact assessment studies linking management of LFSs and biodiversity reveal complex multi-level interactions between grassland or rangeland management and biodiversity; (v) a large range of management options are available to move towards biodiversitybased LFSs. We conclude that future research should address the challenge of collective management of wild biodiversity at higher levels of organization (landscapes, territories, etc.) and that such collective management would greatly benefit from the experience of domestic biodiversity.