Abstract: The characteristics of soil erosion and water loss on the loess plateau was analysed, comprehensive management of small watershed and the achievements of eco-construction were introduced. Based on the theory and practice, 28-word strategy of the land improvement of loess plateau and the concept of conservational eco-agriculture were presented. The small watershed ecosystem health assessment methods and index system were studied. It is suggested that removal lands from cultivation for afforestation and grassplanting should be combined with gully works, and strengthening the systematic study of the natural rehabilitation function of ecosystem should be strengthen. Making the small watershed as a unit, the experimental demonstration study of eco-environment construction to the medium scale and the scientific assessment of eco-rehabilitation's environmental effect and so on should be enhanced.