Elymus sibiricus plays a crucial role in ecological protection and animal husbandry. However, after many years of growth, the biomass of E. sibiricus decreases, and the plants degrade. Moreover, there is no good solution to the problem of degradation of Elymus sibiricus; the addition of nitrogen (N) and phosphorus (P) fertilizers is the primary measure of cultivation management to improve yield, so it is crucial to find the appropriate level of fertilization. This study performed a two-factor split-plot experiment, including four levels of N (0, 45, 60, and 75 kg·hm−2) and four levels of P (0, 60, 75, and 90 kg·hm−2), to investigate the effect of N and P fertilizers on yield, yield components, and photosynthesis characteristics of E. sibiricus. The results showed that the forage yield in 2017 was higher than in 2018. The forage yield in 2017 was highest at N75P0 with a value of 29,926 kg·hm−2, and in 2018 it was highest at N45P0 and N75P0 with a value of 12,266 kg·hm−2 and 12,233 kg·hm−2, respectively, which demonstrates the large impact of year effects on the forage yield. All traits increased with the increase in N and P fertilizer application, but with excess fertilizer application, the photosynthesis was limited, leading to a slowdown in growth and a decrease in yield. In addition, under adequate N fertilization, the role of P fertilization was not significant (p > 0.05). N, P, and N × P can significantly (p < 0.05) affect the yield traits and forage yield of E. sibiricus. According to the PCA, it is clear that N fertilizer has the largest effect, and the growth capacity of degraded E. sibiricus grassland can be restored by adding 75 kg·hm−2 of nitrogen fertilizer.