The Tala Shoal grassland located in Gonghe County of Qinghai Province, is a wide and level grassland. There exist debated about whether it is suitable for farming or for livestock breeding for more than forty years. This paper discusses this question from three aspects: (a) The exploitation of the grassland into farmland will cause serious consequence; (b) There is also the potential ecological crisis if the grassland is under overgrazing beyond the carrying capacity; (3) The best way to use the grassland is the combination of the rational utilization of the grassland with the thorough management of the sand source on purpose to develop the seasonal animal husbandry. It should take the road that includes combining management with utilization, mutual supplement of the shoal and the valley, and mutual improvement of agriculture and animal husbandry.Thus, a new type of grassland will be established.