A ccording to the policy of vegetation restoration and different land use type adjustment in loess hilly region,vegetation restoration affecting the soil erosion,nutrient discharge and nutrient cycling and balance of watershed are reviewed on field plot and watershed.It is pointed out that vegetation restoration can reduce soil erosion and nutrient discharge,strengthen the ability of watershed nutrient cycling and balance,make the watershed nutrient cycling and balance develop to a health way on the watershed.Several issues should be deeply researched in the this area.