The effects of cattle grazing on biodiversity in Mediterranean woodlands are yet unknown. To assess these effects on diurnal butterflies, we conducted daytime surveys in the Mt. Meron nature reserve (northern Israel) in two habitats over two different years. In each habitat we chose one site that was grazed by cattle and, as a control, a similar but ungrazed site. Belt transects (5m wide), divided for 100m replications, were surveyed five times on ridges in 2015 (11 replications, 538 butterflies, 25 species), and nine times in valleys in 2016 (12 replications, 3,944 butterflies, 38 species). In both habitats, species similarity index between sites was high. Richness was higher in the ridge control and evenness was higher in the valley grazed site. In both habitats total abundance was ca. twofold higher in the control, and the abundance of woody affiliated butterflies was threefold higher in the control, probably due to overgrazing, which affects butterflies’ breeding niches. For batha polyphagous and oligophagous butterfly species, abundance was similar between the sites, and for a few of those, associated with increaser plants, it was even higher in the grazed sites. However, the batha monophagous species were significantly more abundant in the control. Monophagous and endangered species were found to be more sensitive to cattle grazing. We conclude that the current cattle grazing management in Mt. Meron reserve affects butterfly populations negatively. Therefore, we recommend more regulated grazing and early-season deferment precautions, along with designation of no-grazing areas in reserves.