Abstract: Natural and artificial factors of grassland degradation in Maduo County in source region of Yellow River were analyzed in this paper. The results showed that overgrazing was the major reason for grassland degradation. Compared with historical average, annual temperature and precipitation in Maduo had an obvious rise since the end of 1980s. Temperature rise concentrated in winter, and precipitation rise concentrated in spring and summer. Therefore, the change in water and heat condition was advantageous to grass growth there. Maduo was a county totally dependent on stock raising, and enlarging livestock population was the only choice for economic development. Together with the pressure of population growth and local Tibetan's traditional value, the number of livestock had been increased continuously, and finally reached summit in the end of 1970s. Since then, the grassland had been kept in the state of overgrazing and degradation, which also created favorable condition for the invasion of pikas, and thus sped up the process of degradation.