Increasing grazing intensities of sheeps and goats in Inner Mongolia, P.R. China, lead to an increasing degradation of the grassland followed by increasing soil erosion and desertification. The effect of different management strategies on the baring capacity and water balance of the soil are not known sufficiently. The experimental area is situated about 500 km north of Beijing in the Xilin river catchment. The investigated soils are Chernozems under Leymus chinensis- and Stipa grandis steppe with an annual precipitation of about 300 mm. There were four plots investigated that had different grazing intensities (overgrazed, winter grazed, ungrazed since 1979, ungrazed since 1999). To measure soil stability the precompression stress value and the shear resistance of the bulk soil and the tensile strength of soil aggregates were determined. Furthermore, the saturated and unsaturated hydraulic conductivity were measured in vertical and horizontal direction to estimate the influence of trampling on the soil structure. After the measurement of water- and ethanol infiltration into soil aggregates the water repellency index R was derived. Soil mechanic properties and soil structure are influenced by grazing. The modification of soil structure can lead to decreasing shear resistance and dynamic and shearing loads such as sheep trampling can lead to soil deformation. The changes in soil structure and soil stability furthermore enhance the danger of water- and wind erosion.