To rapidly adapt to harmful changes to their environment, cells activate the integrated stress response (ISR). This results in an adaptive transcriptional and translational rewiring, and the formation of biomolecular condensates named stress granules (SGs), to resolve stress. In addition to this first line of defence, the mitochondrial unfolded protein response (UPR^mt) activates a specific transcriptional programme to maintain mitochondrial homeostasis. We present evidence that SGs and UPR^mt pathways are intertwined and communicate. UPR^mt induction results in eIF2a phosphorylation and the initial and transient formation of SGs, which subsequently disassemble. The induction of GADD34 during late UPR^mt protects cells from prolonged stress by impairing further assembly of SGs. Furthermore, mitochondrial functions and cellular survival are enhanced during UPR^mt activation when SGs are absent, suggesting that UPR^mt-induced SGs have an adverse effect on mitochondrial homeostasis. These findings point to a novel crosstalk between SGs and the UPR^mt that may contribute to restoring mitochondrial functions under stressful conditions.