Ecological disturbance regimes are shifting and leaving behind novel legacies, like the remnant structures of dead foundation species, which have poorly known impacts on ecosystem resilience. We explored how dead coral skeletons produced by marine heatwaves—material legacies of increasingly common disturbances on coral reefs—influence spatial competition between corals and macroalgae, focusing on whether removing dead branching skeletons stimulates recovery of coral after disturbance. Following a marine heatwave, we removed dead skeletons from reef patches and then used underwater photogrammetry and AI-powered image analysis to quantify trajectories of coral and macroalgae. After four years, removal of dead skeletons resulted in 1.6 times more live coral remaining and reduced development of macroalgae by half, relative to patches where skeletons were left intact. Dead skeletons acted as an alternate substrate type that facilitated macroalgae development, and greater macroalgal abundance caused steeper declines in live coral. Lastly, removal of dead skeletons led to five times greater densities of coral recruits on stable (primary) reef substrate than on comparatively unstable branching coral skeletons. Our findings identify a promising avenue to manage for coral resilience (on reefs where carbonate budgets are not in a deficit) and reveal how material legacies of changing disturbance regimes can alter physical environments to sway the outcomes of spatial competition.