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Grassland degradation has become one of the most important ecological and environmental problems in the world, affecting the ecological balance of grassland and the welfare of residents. To reveal the impact mechanism of herders’ livelihood constraints on grassland degradation, and to explore the comprehensive management methods to ensure herders’ livelihoods and grassland ecological restoration, this paper constructed an evolutionary game model considering local governments and herders. It is found that the ideal stable equilibrium game can be achieved when certain conditions are met, that is, when the local governments actively regulate and herders moderate grazing, the grassland degradation caused by overgrazing can be reduced. The livelihood differentiation of herders significantly affects the stable equilibrium state of the evolutionary game. The local government’s regulation is the key to promoting moderate grazing of herders. The effect of incentive measures on the moderate grazing of herders is limited, while punishment measures can significantly restrict the excessive grazing behavior of herders. Policy support for household livelihood differentiation can effectively motivate herders to moderate grazing and achieve their survival and development needs to a greater extent through a non-grazing livelihood. The research results help decision-makers to formulate policies to combat grassland degradation, and promote the improvement of herders’ lives.

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