Biodiversity provides spatial insurance for ecosystem functioning in heterogeneous landscapes by enabling spatial exchanges among local systems. This study explores the hypothesis that biodiversity enhances ecosystem stability and productivity through spatial averaging and functional compensations between species, particularly at intermediate dispersal rates. A theoretical metacommunity model was used to simulate the effects of dispersal on ecosystem productivity, showing that intermediate dispersal rates maximize local species diversity and enhance ecosystem stability. The model demonstrated that spatial insurance effects are strongest at intermediate dispersal rates, where species diversity is highest. These results have significant implications for conservation and management, emphasizing the importance of landscape connectivity in maintaining biodiversity and ecosystem functioning. The study also highlights the role of spatial dynamics in buffering ecosystem productivity against environmental fluctuations, with spatial averaging and species diversity both contributing to this buffering effect. The findings suggest that biodiversity can enhance ecosystem stability and productivity in heterogeneous landscapes, even when such effects are not observed in closed, homogeneous systems. The study underscores the need to consider spatial processes in ecosystem management and conservation strategies.Biodiversity provides spatial insurance for ecosystem functioning in heterogeneous landscapes by enabling spatial exchanges among local systems. This study explores the hypothesis that biodiversity enhances ecosystem stability and productivity through spatial averaging and functional compensations between species, particularly at intermediate dispersal rates. A theoretical metacommunity model was used to simulate the effects of dispersal on ecosystem productivity, showing that intermediate dispersal rates maximize local species diversity and enhance ecosystem stability. The model demonstrated that spatial insurance effects are strongest at intermediate dispersal rates, where species diversity is highest. These results have significant implications for conservation and management, emphasizing the importance of landscape connectivity in maintaining biodiversity and ecosystem functioning. The study also highlights the role of spatial dynamics in buffering ecosystem productivity against environmental fluctuations, with spatial averaging and species diversity both contributing to this buffering effect. The findings suggest that biodiversity can enhance ecosystem stability and productivity in heterogeneous landscapes, even when such effects are not observed in closed, homogeneous systems. The study underscores the need to consider spatial processes in ecosystem management and conservation strategies.