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The scarcity of tree regeneration is a major concern for the long-term conservation of tree cover in the Aïr-Ténéré Nature Reserve (Sahara, Niger), and the causes of this shortage are poorly understood. We raised the hypothesis that livestock pressure is a key-factor in the mortality of tree seedlings and that facilitation processes among plants may enhance tree regeneration. We tested whether the tussock grass Panicum turgidum could facilitate the regeneration of a keystone tree species, Acacia tortilis var. raddiana, under a grazing regime. We transplanted 3-month-old seedlings of Acacia to plots representing different neighbourhood conditions (in areas without vegetation, amongst intact tussocks, among cropped tussocks, and under branches), which were either fenced or exposed to grazing by large herbivores. Survival and height of 160 transplants were recorded during one year. Acacia performance was much lower in the grazed plots, indicating that large herbivores had a strong negative impact on tree regeneration. Presence of Panicum tussocks had a positive effect on the height of seedlings, likely because they improved soil properties and water availability. No aboveground positive effect on Acacia was detected though the grass did reduce atmospheric aridity. We detected an indirect positive effect of Panicum on Acacia survival in the presence of herbivores when aridity and grazing pressure reached their maximum levels. We obtained evidence that indirect facilitation may occur in arid grazed areas, although it has been predicted to mainly exist in mesic competitive environments. Additionally, our results support the stress-gradient hypothesis against assumptions that competitive effects may dominate in extremely arid environments. Since most of the positive effect on Acacia survival is indirect (biotic grazing refuge) due to the presence of herbivores, transplantation of tree seedlings amongst Panicum may be a simple and low-cost technique for the restoration of Saharan ecosystems degraded by herbivore grazing.