Wildfires are prevalent in grasslands and shrublands. The objective of this study is to provide land managers with a general overview, by assessing the main impacts of wildfire, including those on plant communities (e.g., secondary succession and species invasion), soil characteristics (e.g., water repellency (hydrophobicity), aggregation and structure stability, and contents of organic carbon and nutrients), and surface processes (e.g., ash deposition, ground surface clogging, water runoff, soil erosion, hillslope debris flow, and dry ravel). Additionally, the study discusses the effects of livestock grazing on the functioning of post-fire grasslands and shrublands. Although mesic regions are mentioned, this review focuses on drylands. The comparatively low-to-moderate fuel loads that characterize grasslands and shrublands generate wildfires of relatively moderate intensity, resulting in moderate burn severity. Yet, it seems that because of decreased soil aggregate stability following burning, the hoof action of livestock that access burnt lands shortly after the fire increases the shearing and detachment of mineral material from the ground surface; this increases soil erodibility, with the possible risk of accelerated land degradation. The review ends with an assessment of general implications for environmental sustainability and health, and provides recommendations on wildfire control in rangelands, and on restoration of burnt lands.