In flowering plants, many dioecious species display a certain degree of sexual dimorphism in non-reproductive traits, but this dimorphism tends to be much less striking than that found in animals. Sexual size dimorphism in plants may be limited because competition for light in crowded environments so strongly penalises small plants. The idea that competition for light constrains the evolution of strong sexual size dimorphism in plants (the size-constraint hypothesis) implies a strong dependency of the expression of sexual size dimorphism on the neighbouring density as a result of the capacity of plants to adjust their reproductive effort and investment in growth in response to their local environment. Here, we tested this hypothesis by experimentally altering the context of competition for light among male-female pairs of the light-demanding dioecious annual plant Mercurialis annua. We found that males were smaller than females across all treatments, but sexual size dimorphism was diminished for pairs grown at higher densities. This result is consistent with the size-constraint hypothesis. We discuss our results in terms of the tension between selection on size acting in opposite directions on males and females, which have different optima under sexual selection, and stabilizing selection for similar sizes in males and females, which have similar optima under viability selection for plasticity in size expression under different density conditions.