According to the characteristics of water and erosion environments of different natural zones on the Loess Plateau, this paper studies changes of vegetation types, distribution boundaries of forest and grass as well as restoration capacity of vegetation in different natural zones in the middle Yellow River. The annual precipitation of 530 mm is the critical annual precipitation for forest and grass distribution in the middle Yellow River. Among the zonal and azonal environmental factors affecting watershed sediment yield, the intermediate diameter D50 (mm) of suspended load and forest coverage (V, %) play the leading role. Of them the effect weight of forest coverage (V, %) on catchments sediment yield is only 3.4% less than the role of the intermediate diameter (D50, mm), they are almost the same. To effectively control soil erosion in semiarid, especially in hilly-gullied areas and make sediment transport modulus reduce to less than 6000 t/km2, it is rather difficult by merely relying on natural restoration of forest. In the process of cultivated land conversion into forest land and grassland, measures suiting local conditions should be adopted in tree species selection and artificial afforestation (grass planting) based on management with biological measures for slopeland and engineering measures for hilly-gullied areas, so that watershed forest coverage in key counties can reach at least over 30%. Compared with the standard period of precipitation prior to the 1960s, with the decrease of annual precipitation at various periods, plant productivities decline to different degrees under natural conditions. The main reason accountable for the low survival rate of new seedlings and grass over years is due to precipitation decrease. In light with regression models of annual precipitation and natural vegetation productivities, it is possible to obtain estimated values of watershed natural vegetation productivity and eco-water consumption needed for the restoration to the standard period respectively for the present time or arbitrary period since the 1970s, thus providing a scientific basis for forest and grassland restoration in the middle Yellow River and the management prospect.