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Species‐specific phenological responses to changing climate are reshuffling the timing of species interactions, however we do not fully understand the consequences of these changes for species' population dynamics and community composition. In this study, we experimentally manipulated the timing of germination for five annual plant species from southern California and used pairwise competition experiments and coexistence theory to quantify how phenological shifts may impact species interactions and coexistence. We found that phenological shifts may help promote coexistence when they confer an advantage for competitively inferior species, but in other cases promote dominance by competitively superior species. Earlier germination generally increased species' performance relative to competitors, but the relative changes in intra‐and inter‐specific interactions caused more complex effects on niche and fitness differences. Phenological differences tended to reduce stabilising niche differences for many species pairs and reduced overall coexistence probabilities. Synthesis. While phenological differences among species have typically been considered a form of niche partitioning, it seems increasingly likely that phenological offsets could destabilise species coexistence. The net effects of changing phenology on species coexistence will depend on the complex combinations of effects on intra‐ and inter‐specific interactions, which remain challenging to predict.