Can intraspecific diversity functionally supersede interspecific diversity? Recent studies have established the ecological effects of intraspecific variation on a number of ecosystem dynamics including resilience and productivity and we hypothesised that they may functionally exceed those of species diversity. We focused on a coastal ecosystem dominated by two coexisting bioengineering mussel species, one of which, Perna perna, displays two distinct phylogeographic lineages. A manipulative field experiment revealed greater habitat structural complexity and a more benign microscale environment within beds of the eastern lineage than those of the western lineage or the second species (Mytilus galloprovincialis); the latter two did not differ. Similarly, while infaunal species abundance and biomass differed significantly between the two lineages of Perna, there was no such difference between Mytilus and the western Perna lineage. The evenness and diversity of associated infaunal assemblages responded differently. Diversity differed relatively weakly between species, while evenness showed a very strong difference between conspecific lineages. Our results show that variation within a species can functionally supersede diversity between species. As the two P. perna lineages have different physiological tolerances, we expect them to react differently to environmental change. Our findings indicate that predicting the ecosystem-level consequences of climate change requires an understanding of the relative strengths of within- and between-species differences in functionality.