Ecological restoration and settlement construction connect and interpenetrate with each other. Development of rural settlement must be based on the ecological environment protection and restoration,gradually reduce the pressure on regional ecological environment,and reverse the vicious circle of "ecological degradation—poverty" in rural settlement. Through field research,literature study,and theoretical analysis methods,the paper puts forward a rural settlement development pattern benefit to ecological restoration in loess hilly and gully region of North Shaanxi Province based on the knowledge of ecological environment,its repair pathways,and its restrictive factors. It is concluded that the rural settlement should adjust its landuse structure to favor soil and water conservation in the production tillage management,adjust the scattered settlement living space structure,shift population to resolve the question of overloaded population,and further improve the works on village relocation and combination in rural settlement.