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Abstract The size and frequency of resource pulses can affect plant interactions and increase the abundance of invasive species relative to native species. We examined resource pulses generated during the desiccation and rehydration of communities of native biological soil crust (biocrust)‐forming mosses, in the context of positive associations between biocrusts and the invasive forb,Centaurea stoebe.We surveyedCentaureaand biocrust cover and evaluated how interactions amongCentaurea, biocrusts and water pulses influenced plant biomass and soil nitrogen in a field experiment.Centaureaseedling and biocrust interactions were also compared in a greenhouse experiment to evaluate differences related to life stage.In field surveys,Centaureaand biocrusts were positively associated. Across water pulse treatments, biocrust biomass decreased whenCentaureawas removed, indicating thatCentaureafacilitated biocrusts. Biocrusts did not affect adultCentaureain the field, butCentaureaseedling biomass was greater when grown with biocrusts in the greenhouse. Water pulses did not affect plant biomass, but interactions betweenCentaureaand biocrusts corresponded with variation in the effect of water pulses on soil nitrogen which were not evident whenCentaureaor biocrusts were grown alone. Twenty‐four hours after large water pulses were added, soilwas nine times higher in plots where biocrusts andCentaureaco‐occurred compared with small water pulse plots. In these same plots, soiltended to be lower at the end of the experiment.These results highlight positive interactions between an invasive exotic forb and native moss biocrust. Water pulses influenced soil nitrogen availability when both plants co‐occurred, but did not affect plant biomass, suggesting that resource pulses and species interactions can interact to affect ecosystem processes. A freePlain Language Summarycan be found within the Supporting Information of this article.