Background This study aims to explore the growth and production potential of Hippophae rhamnoides ssp. mongolica “Ulanshalin,” a pioneer species of soil and water conservation, after being planted in the Yellow River Basin area with serious soil erosion. An analysis of the differences in photosynthesis and fruit yield of H. rhamnoides plants grown in two typical soils in the watershed is key to understanding whether local conditions are suitable for the growth and yield of H. rhamnoides, as well as the impact of the plants on soil and water conservation. Methods During the growing season, diurnal changes in the gas exchange parameters of Hippophae rhamnoides-like plants growing in Loess soil and Aeolian soil were continuously monitored, and the effects of total nitrogen (TN) and other elements on the net photosynthetic rate (PN) of the plants were analyzed and compared in the two different soil types. The morphological and quality differences of Hippophae rhamnoides fruits were also compared after reaching the ripening stage. Results (1) There was a significant difference in the composition of Loess soil and of Aeolian soil. The organic matter content and AK content of the Loess soil was significantly higher than in the Aeolian soil, and the pH was closer to neutral. However, the TK content, TP content, and AP content of the Aeolian soil were slightly higher than in the Loess soil, the pH was higher, and it was alkaline. (2) After controlling the light and temperature, with all other external factors consistent, the daily variation trend of PN, Tr, and Gs in the leaves of H. rhamnoides plants growing in the two different soils were basically the same. There were differences, however, in when these factors reached their peaks. Soil composition had an impact on the photosynthetic characteristics of H. rhamnoides, with TN, TP, AP, and SOM being the main factors promoting the photosynthetic rate of H. rhamnoides PN. The peaks of PN, Tr, and Gs of H. rhamnoides plants growing in Aeolian soil were higher than those growing in Loess soil. (3) The average stem length of H. rhamnoides plants growing in Aeolian soil was higher than the plants growing in Loess soil. The number of thorns in the branches of plants in the Aeolian soil was relatively low, and the weight of 100 fruits (28.28 g) was significantly higher than the weight of 100 fruits of the H. rhamnoides plants grown in Loess soil (11.14 g). Conclusions The results of this study show that in the Yellow River Basin area, Aeolian soil is more conducive to the growth of H. rhamnoides plants than Loess soil. H. rhamnoides plants growing in Aeolian soil had good adaptability and stress resistance, and a larger potential for fruit production. These findings provide insights for ecological restoration and the creation of economic value in the Yellow River Basin area.