The study area, situated in the eastern Sichuan province, is characterized by hilly landscape. Due to long-term deforestation of natural ever-green broad-leaf vegetation, this area had been suffered from soil erosion over time and was regarded as one of the most serious eroded region in the upper reach of Yangtze River. In order to mitigate soil erosion, a large area of cypress (Cuppressus funebris) monoculture was established starting early 1970s. However, the current monoculture was in a quite poor state in terms of stand structure, natural regeneration, stand stability, product supply and ecological protection. The objective of the study is to identify optimum technical approach for stand restructure aiming to improve multiple functions of the cypress monoculture. Through the survey of sample plots and observation of hillslope runoff grounds designed for cypress monoculture, pine-cypress stand, alder-cypress stand and oak-cypress stand, the hydrological effects of the four cypress stand types were analyzed. It was found that: (1) highly significant relationship existed between canopy interception and atmospheric precipitation. Canopy interception ratio decreased with the increase of rainfall intensity. The maximal interception for single rainfall ranked from higher to lower as: oak- cypress stand (9.5 mm) > alder-cypress stand (9.2 mm) > pine-cypress stand (8.8 mm) > cypress monoculture (8.5 mm). The canopy interception of cypress monoculture in each rainfall intensity class was significantly lower than that of other three stand types. (2) Among the four cypress stands, there were highly significant differences in water-holding capacity and its changes with length of soaked time for either non-decomposed litter or semi-decomposed litter. With a total litter storage ranging from 4.06 t/hm² to 7.62 t/hm²; the total maximal water-holding capacity of the litter ranked was in the order of: oak-cypress stand (17.07 t/hm²) > alder-cypress stand (13.26 t/hm²) > pine- cypress stand (8.89 t/hm²) > cypress monoculture (7.57 t/hm²). For both total storage and total maximal water-holding capacity, oak-cypress is significantly higher than other three stand types. (3) The non-capillary porosity and total porosity for 0-40 cm soil depth varied between 4.21%-6.94％ and 39.35%-45.52％respectively. The non-capillary porosity and total porosity of oak-cypress were 6.94% and 45.52%, which were significantly higher than that of other three stand types. The maximal water-holding capacity of 0-40 cm soil depth ranked in the order of: oak-cypress stand (1820.83±124.80) t/hm² > pine- cypress stand (1686.85±76.15) t/hm² > alder- cypress stand (1644.45±119.84) t/hm² > cypress monoculture (1574.14±119.89) t/hm². For the four stands, the surface runoff and sediment yield in rainy season (May to October in 2007) varied between 77.8-139.0 mm and 534.2-1467.9 kg/hm² respectively. In conclusion, the oak-cypress stand is the optimal among the four cypress stand types in terms of water and soil conservation. This suggests that restructure of cypress monoculture should aim to the succession of oak-cypress stand.