Abstract: Grassland degradation had a serious impact on local ecological and economic development. In order to alleviate the influence of degraded grassland on vegetation growth and improve the soil environment of degraded grassland, a bamboo fungus symbiotic system composed of high water absorbing bamboo fibers and bamboo fiber symbiotic bacteria was used to treat severely degraded grassland (the total coverage decreased by more than 30% and the total grass yield decreased by more than 50%). The effects of the system were as follows: (1) Compared with the control group, the monthly average soil moisture in the test group was 24.74% higher, and the monthly average temperature was 3.4% lower. The soil moisture from July to November was significantly higher than that in the control group. (2) The number of bacteria, fungi and actinomycetes in the test group was higher than that in the control group, which were 27.48%, 107.76% and 187.76% respectively. (3) The contents of ammonium nitrogen, available phosphorus and organic matter in soil were higher than those in control group, which were 60.06%, 41.05% and 10.47% respectively. (4) The number of soil microorganisms was positively correlated with soil nutrient content, fungi was significantly positively correlated with available phosphorus, and actinomycetes was extremely significantly positively correlated with available phosphorus. (5) The leaf length, width, total phosphorus and total potassium contents of chicory general leaves in the test group were significantly higher than those in the control group.