Abstract: 【Objective】 To study the effect of peasant household livelihood capital on the reversion of ecological degradation in Hexi desertification area. 【Methods】 Using field investigation, farmer questionnaire and literature analysis, using SLA sustainable livelihood framework to construct multi-dimensional evaluation index of farmers' livelihood in desertification area, and using factor analysis and Logistic regression model, 523 peasant household questionnaires in Hexi desertification area were analyzed to explore the influence of farmers' livelihood capital on the reversal trend of ecological degradation. 【Results】 The livelihood capital of farmers in Hexi desertification area was 2.727, including 0.358 for human capital, 0.283 for natural capital, 0.681 for material capital, 0.454 for financial capital, 0.609 for social capital and 0.350 for cultural capital respectively. From the comprehensive response score of farmers to the ecological degradation reversion trend in Hexi desertification area, the response score of pure farmers to the ecological degradation reversion was the lowest, which was -0.502, and the response score of non farmers to the ecological degradation reversion was 0.32. Meanwhile, the study found that with the increase of household incomes, the response of farmers to the reversion trend of ecological degradation showed a slow rise of linear type. Human capital, material capital and social capital had great influence and contribution on the sustainable reversion of ecological degradation. In group I and group II, for each unit of increase in human capital, the probability of turning the comprehensive response of farmers to the reversion trend of ecological degradation into sustainability increased by e3.752 = 42.61 times and e2.433 = 11.39 times respectively, the material capital increased by 8.13 times and 22.22 times respectively, and the social capital increased by 6.65 times and 1.77 times respectively. 【Conclusion】 The total livelihood capital of farmers in Hexi desertification area was low and the structure was unbalanced. The livelihood capital of pure farmers was low while non-farmers was high. With the transform of the way of livelihood from pure farmers into non farmers, the comprehensive score of the response of farmers to ecological degradation has been continually increasing, but the cognitive and behavioral response of pure farmers has not played an obvious positive role in promoting the reversion of ecological degradation in this area. The human capital, material capital and social capital in the livelihood capital of the farmers in the desertification area play an important role in reversing the trend of ecological degradation.