We compared land surface radiation and water-heat flux of two different land use types using eddy covariance flux data of typical grassland and cropland ecosystems in a farming-pastoral ecotone of northern China. The comparisons revealed that the biophysical mechanisms of grassland reclamation affected the surface radiation flux budget and the water-heat flux balance. The results further showed that, during the growing season (May-September), grassland reclamation increased the solar radiation by 10.74%, reduced the shortwave reflected radiation by 14.20%, and increased the net radiation by 35.16%. As for the water-heat flux, grassland reclamation increased the latent heat flux 0.20 MJ/m², whereas the sensible heat flux was reduced by 0.09 MJ/m². The surface albedo decreased during the growing season, which was illustrated by the surface that absorbed more solar radiation and had a tendency to rise in the temperature. In contrast, the albedo increased during non-growing season, which was illustrated by a decrease in the temperature; in addition, a negative exponential relationship between surface albedo and soil moisture was observed. The Bowen ratio in the early and late vegetation growth period increased and decreased dramatically during these growing stages. Finally, the grassland reclamation affected the near-surface atmospheric conditions, which consequently changed the regional climate.