Sub-surface irrigation (SUI) is a new water-saving irrigation technology. To explore the influence of SUI on soil conditions in a cherry orchard and its water-saving efficiency, experiments were conducted from 2009 to 2010 using both SUI and flood irrigation (FLI) and different SUI quotas in hilly semi-arid area of northern China. The results demonstrated the following: 1) The bulk density of the soil under SUI was 6.8% lower than that of soil under FLI (P<0.01). The total soil porosity, capillary porosity and non-capillary porosity of soils using SUI were 11.7% (P<0.01), 8.7% (P<0.01) and 43.8% (P<0.01) higher than for soils using FLI. 2) The average soil temperatures at 0, 5, 10, 15 and 20 cm of soil depth using SUI were 1.7, 1.1, 0.7, 0.4 and 0.3°C higher than those for FLI, specifically, the differences between the surface soil layers were more significant. 3) Compared with FLI, the average water-saving efficiency of SUI was 55.6%, and SUI increased the irrigation productivity by 7.9-12.3 kg m-3 ha-1. 4) The soil moisture of different soil layers using SUI increased with increases in the irrigation quotas, and the soil moisture contents under SUI were significantly higher in the 0-20 cm layer and in the 21-50 cm layer than those under FLI (P<0.01). 5) The average yields of cherries under SUI with irrigation quotas of 80-320 m3 ha-1 were 8.7%-34.9% higher than those in soil with no irrigation (CK2). The average yields of cherries from soils using SUI were 4.5%-12.2% higher than using FLI. It is appropriate to irrigate 2-3 times with 230 m3 ha-1 per application using SUI in a year with normal rainfall. Our findings indicated that SUI could maintain the physical properties, greatly improve irrigation water use efficiency, and significantly increase fruit yields in hilly semi-arid areas of northern China.