Coastal wetland restoration can be used to offset past wetland losses and/or reduce future losses due to land-use changes, rising sea levels, and accelerating climate change. However, there is a need for information regarding the restoration-relevant performance of foundation species like mangrove and marsh plants, including their responses to acute and chronic stressors that can affect restoration outcomes. Mangrove encroachment and poleward range expansion into marsh, facilitated by warming winters, has provided restoration practitioners in the northern Gulf of Mexico with a new foundation plant species to consider using during restoration. To evaluate the performance of transplanted mangroves and characterize restoration-relevant marsh–mangrove interactions, we planted nursery-raised black mangrove (Avicennia germinans) seedlings within different marsh cover treatments along an eroding marsh-dominated shoreline in Louisiana. Mangrove seedling survival increased with greater densities of marsh cover, indicating that marsh grass (Spartina alterniflora) may facilitate mangrove establishment. However, only 35% of transplanted mangrove seedlings established after 10 weeks, suggesting a low return on resources expended in raising seedlings for 1–3 years in greenhouse conditions. Moreover, a 2018 freeze event killed 100% of transplanted mangrove seedlings, while nearby naturally established mangroves suffered minor damage. Our results, along with those in the mangrove restoration literature, indicate that planting mangroves in the northern Gulf of Mexico may not be the most efficient use of limited resources. Rather, restoration efforts may benefit from focusing initially on the restoration of abiotic conditions (e.g. elevation and hydrologic regimes), followed by using marsh plants (rather than transplanted mangroves) to jump-start ecosystem development.