Field experiments were carried out to determine effects of cereal-cereal or wheat-oilseed rotation on degradation, recovery and nutrient balance of dryland soils. Results showed that soil biomass dominated with bacteria was increased significantly by spring highland barley-spring oilseed or spring wheat-spring oilseed. The increments of organic matter, total nitrogen and total phosphorus in soil were 3.053.06 g/kg, 0.060.07 g/kg and 0.010.26 g/kg, respectively. Spring wheat-spring highland barley or spring highland barley-winter wheat rotation also was benefited to raise soil fertility. However, spring wheat continuous cropping and spring highland barley-winter wheat rotation had a positive effect on micro-organism community in soil where the amount of soil bacteria decreases significantly. There was a degradation trend for the organic matter, total N and total P in 030 cm, 3161 cm soil layers. Although K was input in soil, there was a deficiency of soil K in different rotation systems.