[Objective] The influence of cultivating Stropharia rugosoannulata with straw on clean water runoff, soil improvement and grass control in economic forests(especially in the newly economic forest) was explored, in order to provide technical support in water conservation capacity, ecosystem conservation, grass control and soil fertility improvement.[Methods] Two different kinds of slope land economic forests in the source area of Kulü River at upstream of Paihe River was selected, the technology of straw mulching was used to plant Stropharia rugosoannulata, and the water quality, soil organic matter and weed diversity of the slope land were analyzed in different growth periods of the mushroom.[Results] The cultivation of Stropharia rugosoannulata with straw effectively reduced the content of total nitrogen (42.68%~50.47%), total phosphorus (45.72%~46.74%) and suspended solids (SS, 33.41%~36.58%) in the water in this area. At the same time, it increased the content of soil organic matter by 10.17%~16.42% on average, and reduced the diversity and species of weeds in this area, thus, effectively reduced the water and fertilizer loss, and increased clean water runoff in a short period.[Conclusion] Cultivating Stropharia rugosoannulata with straw can effectively reduce the contents of total nitrogen, total phosphorus and SS in the runoff, increase the content of soil organic matter, reduce the diversity and species of weeds in this area, and play an important role in controlling water, fertilizer and soil erosion. In addition, the effect may be even more pronounced in the newly economic forest changed by uncultivated land.