The purpose of this review is to outline the status quo regarding multifunctional and social demands on grasslands. The products and services that grassland ecosystems can provide society are detailed. Existing agro-policies are reviewed as to how they reflect social demands on grasslands. A farm level analysis considers many factors that may influence the fulfilment of social demands. Conclusions are drawn on the future of grassland use under different socio-economic conditions. Traditional (meat, milk, fibre, medicinal plants, fuel, power) and non-traditional (branded products, biodiversity as gene pool, biomass for energy) products are identified. Services of grasslands are summarized at three different levels viz. globally (regulation of climate, air quality, water resources, soil health, carbon sequestration, maintaining biodiversity), regionally (aesthetic and landscape values) and locally (preservation of cultural heritage, maintenance of the significance of religion for pastoralism). Targeted policies are emerging that assist in sustaining healthy grassland ecosystems and fulfilling multifunctional demands at different social levels. In spite of these policies, the future of the world's grasslands seems to vary by country, according to the level of development. In poor countries, production from grassland will remain of vital importance (in some cases, with the threat of ecosystem degradation), whilst at the same time, ecological and amenity uses of grassland appear to be ignored. Trends in the function of grassland ecosystems in developed countries seem to be just the opposite. The importance of production is declining, while ecological and amenity functions receive increasing attention in response to multifunctional and social demands. Due to the national conditions the future of grassland use in Hungary will differ from these patterns. The production from grassland is going to be negligible. The ecological role (landscape, biodiversity) will remain very important. Remarkable increase is predicted in the amenity role of grasslands following the overall economic development in the country.