1. Ants are widely regarded as 'ecosystem engineers' because their nest construction and contributions to nutrient cycling change the biological, chemical, and physical properties of the soil around their nests. Despite increasing attention to ant manipulation of soil ecosystems, the extent to which many common species influence soil properties, as well as nutrient uptake and community composition of plants near nests, is still unknown. 2. This study tested hypotheses that activities of a common subalpine ant, Formica podzolica, alter soil moisture and pH, redistribute nitrogen around nests, and affect plant species abundance and ground cover. 3. A combination of field sampling techniques showed that distance from a nest had a positive relationship with soil moisture and a negative relationship with plant abundance next to and downhill from nests. Slope aspect also affected plant communities, with downhill transects having higher plant cover and above‐ground biomass than uphill transects. A stable isotope analysis did not reveal that plants near nests had enriched 15N, but there were substantial differences in 15N among sites. 4. Overall, this study uncovers significant impacts of F. podzolica on the subalpine microhabitats directly surrounding their nests. Formica podzolica colonies have significant impacts on the subalpine microhabitats directly surrounding their nests.Areas directly next to and downhill from nests have more plants and lower soil moisture than areas further away.Slope aspect affects plant communities, with downhill transects having higher plant cover and above‐ground biomass than uphill transects. [ABSTRACT FROM AUTHOR]