The emergence of novel ecosystems, characterized by shifts in species composition and interactions, abiotic conditions and altered ecosystem functioning, is a major and inevitable challenge to contemporary ecosystem management. This study examines the ecological implications of Trachycarpus fortunei, a non-native evergreen palm, currently involved in a biome shift from deciduous temperate forest to evergreen laurophyllous forest in the Southern European Alps. Specifically, we investigated the effects of T. fortunei encroachment in peri-urban forests on flying and ground-dwelling arthropod communities as well as on leaf-litter decomposition. We found that the presence of T. fortunei altered arthropod community composition, mostly by reducing the number of herbivore species. This effect was likely driven by the lower quality of palm leaves as a food source compared to deciduous, dicotyledonous tree leaves and by a lower plant richness in the herb and shrub layer. Furthermore, we observed higher rates of leaf-litter decomposition associated with increasing abundance of young palm trees, which was not explained by predictors commonly associated with litter decomposition (i.e., detritivore abundance, litter depth and air temperature). Hence, the slow decay of palm leaves appears to be counterbalanced by the favourable conditions for litter decomposition within dense palm stands. Overall, our findings indicate that high densities of the non-native palm species (T. fortunei) impacts herbivore arthropod communities in the Southern European Alps, providing first evidence of possible effects on ecosystem functioning of this ongoing biome shift. These outcomes are integral components of the broader process of laurophyllisation in the study region, a phenomenon linked to climate warming and land use change, encompassing both native and non-native species.