Habitat fragmentation increases the proportion of forest borders in the landscape and many forest borders lose their structural complexity due to modern forestry practices. However, remnants of structurally complex deciduous forests can remain as ecotones between plantations and agricultural fields. In this study we used terrestrial laser scanning to measure structural complexity of different forest borders, measured microclimate, and surveyed bats and macro-moths to understand how these taxa are affected. Our aim is to disentangle the main drivers, direct or indirect, that influence bat and moth assemblages. We studied 79 forest borders, and surrounding landscapes and compared them with adjacent agricultural fields and coniferous plantations. Overall, we found less bat activity and lower macro-moth diversity in simple compared to complex borders. Using structural equation modelling, we show the contrasting responses of forest-specialist bats and moths to structural complexity; with bats responding positively and moths negatively. We found similar divergent results in relation to understorey openness; with increasing forest-specialist bat activity but a lower diversity of forest-specialist moths in more open borders. Understorey vegetation also appears to regulate microclimate with more open borders being warmer and less humid. This has a potential knock-on effect for bats as they favoured borders that were warmer and more humid. Surrounding land-cover was more important than structural complexity for generalist species; with increasing generalist bat activity due to a higher proportion of local deciduous forest cover and increasing generalist moth diversity in landscapes with more forest borders. Overall, these complex relationships between forest structure, microclimate and landscape factors, coupled with divergent responses of both taxa highlight their diverse ecological needs. Therefore, we highlight the importance of managing forest borders to retain complexity and connectivity within multifunctional landscapes.