Abstract: The Chinese government launched the Grain for Green project in 1999 to mitigate increasing soil erosion and land degradation in the Loess Plateau. By using Huining County of Gansu Province as a typical Loess Plateau region, the impact of the Grain for Green project on the livelihoods of the local people in the Loess Plateau was investigated. The research data were collected through face-to-face household questionnaire survey and from environmental, social and economic statistics as well as relevant government reports. Data analysis was conducted in SPSS statistical software and relevant satisfaction indices computed. Changes in land use, cropping structures and animal raising forms, and farm family income were analyzed along with farmers' satisfaction with the effects of the Grains for Green project. The study revealed changes in land use structure since the implementation of the Grain for Green project from 2000 to 2010. About 4.48% of the cultivated land was turned into grassland and forest. There was 0.08 hm² over 25° slope cultivated land not returned to forest or grassland for per househole. Therefore there was the need to enhance implementation of the project and consolidate all project achievements. The results showed increases in yields and cultivated land areas of local major crops, including cereals, tuber crops, beans and oil crops. This was as a result of increased investment in cultivated lands and intensification of agricultural practices such as terrace construction. With the promotion of mulching cultivation techniques such as plastic film mulching for maize by Huining go- vernment, the acreage of land under maize had increased approximately 3 times. Animal husbandry had increased slightly due to severe natural conditions such as drought and insufficient forage production and supply. This suggested that the local breeding industry was still at a low stage. Based on increased farming risk due to drought, there was need to enhance farmers' consciousness of environmental protection. Also because wages were higher in cities than that in counties, most households chose to work in cities. This suggested that cities wage was the most important source of income of farmers, accounting for 62.69% of total income. Investigating farmers' satisfaction with the Grain for Green project suggested a general satisfaction with the project. About 9 of 11 impact indicators responses were positive. Dissatisfaction mainly came from worsening employment opportunities and low wages, respectively with satisfaction degrees of ?0.1 and ?0.2. The study was expected to positively contribute to further implementation of the Grain for Green project and sustainable ecosystem management in the Loess Plateau.