Asexual reproduction is the main mode of alpine plant reproduction, and buds play an important role in plant community succession. The purpose of this study is to explore whether the desertified grassland can recover itself through the existing bud bank. The bud bank composition, distribution and size of different desertified grasslands were studied using unit volume excavation on the Tibetan Plateau. The bud bank consisted of tiller, long and short rhizome buds, and more than 40% of buds were distributed in the 0–10 cm soil layer. Enclosure changed the bud density, distribution and composition. The bud densities were 4327 and 2681 No./m2 in light and middle desertified grasslands before enclosure, while that decreased to 3833 and 2567 No./m2 after enclosure. Tiller bud density and proportion of middle desertified grassland were the highest, increased from 2765 (31.26%, before enclosure) to 5556 No./m3 (62.67%, after enclosure). There were new grasses growing out in the extreme desertified grassland after enclosure. The meristem limitation index of moderate desertified grassland was the lowest (0.37), indicating that plant renewal was limited by bud bank. Plants constantly adjust the bud bank composition, distribution, and asexual reproduction strategy, and desertified grasslands can recover naturally, relying on their bud banks through an enclosure.