The grassland ecosystem, one of the most important terrestrial ecosystems in China, has enormous ecological values. This article reviewed the significance and selection principles and methods of the current grassland ecological function evaluation indicator system. Based on the existing research results, new evaluation methods were explored. A more scientific, fair and operational evaluation indicator system is proposed by incorporation of Frequency Aanlysis, Expert Advice Method and Analytical Hierarchy Process into the evaluation process. This system consists of eight evaluation factors, including in order of significance, water and soil conservation, water holding, carbon fixation and oxygen release, biological diversity maintaining, air cleaning, eco-tourism, waste degradation, and nutrient recycling.