Using different amount of water retaining agent to pelletize Astragalus adsurgens seeds, the effects of water retaining agent on pelleted seeds germination and seedlings were studied. By pelletizing, Astragalus adsurgens seed with water retaining agent in different content level, the seedling growing trial and drought-resistant tests were studied. In the germination and seedling growth trial, compared with the control treatment, using water retaining agent at the level of 7%, 9% could significantly increase germination rate by 70% and 63.19%, and root length, root surf area increased by 19.36% and 45.26% respectively; In the drought-resistant tests, the bottom leaves of Astragalus adsurgens wilted first, the top leaves showed same symptoms when the soil was much drier. Compared with the control treatment, water retaining agent at the level of 5% and 7%, the quantity of the yellow leaves decreased by 15.58% and 22.07% respectively at 13th day after thinning seedlings; the content of soluble sugar decreased by 13.1% and 13.6% respectively with increase of water retaining agent concentration when water retaining agent was at the level of 7% and 9%; proline was decreased by 20.33%, 22.85% and 19.08% respectively at the level of 5%, 7% and 9%. The results showed that the appropriate content of water retaining agent was 7%~9% in pelletizing Astragalus adsurgens seed.