Herdsmen rely on grassland, execution of grassland ecological compensation policy requires forbidding or pausing livestock farming, which will directly impact herdsman's income. Their desires on forbidding or pausing livestock farming also directly impact execution of policy and ecological restoration. The ecological compensation standard plays a direct part on herdsman's desire and income. This paper analyzes the influence mechanism of grassland ecological compensation standard on herdsman's income at a theoretical level, and establishes a system dynamical model to study Xilingele's case. Three different compensation standards are presented on different scenarios. The result shows a low grassland ecological compensation standard in Inner Mongolia, leading to a slow income increase and ecological retrogradation. Economy and ecology will get worsened if the compensation is decreased, and improve if increased, but herdsman's income will largely increase and grassland ecology will rise then fall at a upsidE-down U shape if the compensation is over increased. Change of grassland ecological compensation standard will directly and indirectly impact herdsman's income and further impact grassland ecological restoration.