This data provides support for a research project assessing the impacts of restoration and drought on taxonomic, functional and phylogenetic diversity. Restoration seeks to recover damaged habitats through improving taxonomic diversity but does not often consider functional or phylogenetic diversity. Integrated approaches with taxonomic, functional, and phylogenetic diversity can improve our mechanistic understanding of restoration outcomes. Projected droughts may lead to shifts in functional diversity that will influence species coexistence. I utilized a drought design (excluding 60% of rainfall) that was experimentally restored in a California coastal grassland and measured plant community composition four- and six-years post-treatments. I collected leaf traits to determine shifts in community weighted trait means (CWT) and functional diversity metrics (richness, evenness, dispersion). To assess phylogenetic relationships, I calculated nearest taxon distance, phylogenetic distance at the 10th quantile (PD10) and mean phylogenetic distance. Restoration increased taxonomic diversity, functional richness and functional dispersion but decreased phylogenetic diversity at large (MPD) and small (PD10) evolutionary scales. Restored communities had lower CWT for absolute and specific leaf area. Drought intensified environmental filtering by selecting for plants with key drought management strategies (via CWT shifts) resulting in lower functional evenness. Grassland restoration was effective in improving native cover and richness six years later with minimal maintenance indicating that restoration outcomes may be resistant to the impacts of drought in coastal California. This could be caused by increased niche complementarity as indicated via higher functional dispersion and richness.