Grassland ecological compensation involves users or beneficiaries of grasslands paying fees to the resource owners or to those bearing the cost of protecting the grassland ecological environment during the lawful use of these resources. This system is designed to account for the costs incurred in safeguarding the grassland environment and to incentivize sustainable resource use. In China, the creation of a rational, equitable, and sustainable compensation mechanism is a major focus and a key challenge in the country’s ongoing efforts to protect grassland ecosystems. Based on the bibliometric method, this study compiles and organizes an extensive body of research from both domestic and international sources. By systematically reviewing these studies, we aim to provide a comprehensive analysis of the current status, trends, and development models in the field of grassland ecological compensation. In addition, the study explores the unique characteristics of grassland compensation and how it differs from similar systems used in forest, river, and farmland ecological compensation. This comparative analysis highlights the distinct challenges and opportunities presented by grassland ecosystems and their specific compensation needs.Early research in this field primarily focused on improving the quality of grasslands, enhancing species diversity, and preserving the landscape. However, with the increasing complexity of grassland conservation efforts, other disciplines such as economics and sociology have been introduced into the broader design framework of ecological compensation. These interdisciplinary approaches allow for more comprehensive policy development and a deeper understanding of how compensation mechanisms impact various stakeholders, particularly local herders. Current research increasingly focuses on the interaction between grassland management policies and herder satisfaction, the assessment of policy outcomes, and the establishment of baseline compensation rates for grassland areas.A key finding of this study is that compensation systems across ecological sectors, such as forests and rivers, differ in their mechanisms and approaches to benefit evaluation. One significant challenge in developing grassland compensation mechanisms lies in the underappreciation of grasslands’ economic value, making it difficult to establish a market-based mechanism similar to that in forest ecosystems. the financing models that work for watershed ecosystems often cannot be applied directly to grasslands due to differences in ecological and economic factors. Furthermore, the distinct characteristics of grassland ecosystems necessitate tailored evaluation indicators and weighting systems, setting them apart from other ecological compensation systems.Building on the discussion of research trends and emerging frontiers in grassland ecological compensation, this paper further evaluates the feasibility and the pros and cons of various quantitative research methods, tailored to national contexts, to inform future research and policy development in this area.