Abstract: The profit analysis of ecological protection and construction projects was conducted with Tanggulashan Town in Geermu City of Qinghai Province as a sample. The result indicated that the input for each household was 308,370 RMB on average since 2004, and 76,090 RMB per capita. The input for grassland was 15.61 RMB/hm2. The livelihood and animal production conditions were significantly improved. The development of economy, ecology and society was greatly enhanced. The problems existed in project implementation were analyzed and the suggestions were offered as well.