From the perspective of the holistic governance theory, the dimensions of regulation and governance in the implementation of the grassland ecological compensation policy (GECP) were thoroughly analyzed in this study, which deduced that GECP is a "regulation balance" oriented policy, and a comprehensive evaluation for GECP's implementation effect is necessary. Thereafter, the method of "participatory assessment development" evaluation (PADev) is recommended. Based on the case study of a pure husbandry village in the typical grassland of Xilinguole, Inner Mongolia, this study presented the application of the PADev method in detail and obtained comprehensive evaluation conclusions with both "formative" and "inter-subjectivity" focuses. To verify the suitability of PADev for the evaluation of GECP, this study further presented the other evaluations based on the ecological survey and sampling social survey from the perspective of a "meta-evaluation", as a supplement to the "progressive" evaluation of the PADev method. Case studies showed that the status and role of GECP is embodied in the historic development and structural changes of "grass-livestock-human" (up to 35 years, starting from the livestock contracting policy in 1983). It is difficult to directly determine the causal relationship between the ecological benefits of GECP from the present situation. However, from the perspective of path dependence and future development based on institutional change, the government-led GECP will actively promote herdsmen's self-integration and adaption to the modern market, as well as the convergence between "Ecological livestock carrying capacity" and "Actual livestock carrying capacity".