AbstractThe purpose of this study was to clarify the effect of grazing exclosures on the recovery and rehabilitation of overgrazed steppe vegetation on varying slope aspects in the Loess Plateau of northwest China. The annual precipitation in the area studied was 400–480 mm. Soil samples were taken on nine slopes in the five‐year exclosure and on five slopes outside the exclosure after a vegetation survey; they were then analyzed chemically. Mean number of species recorded per 0.25 m2was lower on the south‐facing slope than all other slopes. The reverse trend was observed for aerial biomass. Species diversity estimated by information content was higher in the grazing zone than in a 3200‐ha protected zone within an exclosure. From species ordination by principal component analysis, species with lower coverage in the grazing zone werePoa sphondylodes, Roegneria purpurascens, Hierochloe odorata, and Potentilla bifurca, which are all recognized as indicator species for rehabilitation efforts. In the soil surface layer, calcium contents were low, and the total contents of carbon and nitrogen were high on the north‐facing slope in the exclosure. The protection by exclosure of overgrazed steppe was seen to be effective because the accumulation of soil organic matter increased and water balance