Trait-based approaches present a promising avenue for improving our understanding of species coexistence and community assembly, while intraspecific trait variation (ITV) across different spatial scales is important in trait-based community assembly mechanisms, especially in extreme environments. In this study, we focused on the functional diversity and community assembly patterns of a desert community across different spatial scales and investigated whether ITV plays a significant role in community assembly processes in arid habitats. A 50 m × 50 m plot with different small quadrats was established in a typical desert community at the transition zone between the Tengger Desert and Loess Plateau in China. A total of 14 traits were selected to assess the trait-based functional diversity and assembly processes in the community. We found that functional diversity showed different patterns when considering ITV and related to different types of traits (chemical traits or morphological traits) and some soil factors (pH and nitrate nitrogen). Plant communities in this study showed stochastic distribution patterns and similar functional diversity patterns based on functional trait approaches, regardless of spatial scales. Also, the effect of ITV on community assembly did not show more effect with increasing scales. These results indicated that ITV diluted deterministic processes in community assembly across scales in arid habitats.