Global concern about the restoration and reconstruction of vegetation ecosystems has increased, thus the concepts of potential natural vegetation (PNV) and habitat suitability should be integrated into revegetation programs to achieve sustainable ecosystems. Based on high spatial resolution climate data, this study revealed the dynamic evolution of spatial pattern and habitat suitability of PNV during 2001-2020 in the Loess Plateau (LP) using a dynamic vegetation model (LPJ-GUESS), and identified the vegetation priority restoration area. The results showed that the main PNV in the LP were grassland and forest, and potential grassland was mainly distrubuted in the north and northwest regions (about 73.23% of LP area), while potential forest was mainly located in the south (about 26.16% of LP area), and very few barren ground was mainly distributed in the western high-altitude mountains. Among the potential forests, temperate deciduous broad-leaved trees, cold temperate evergreen coniferous forest and temperate evergreen coniferous trees accounted for about 22.28%, 3.88% and 0.01%, respectively. With the advance of climate change, the area of potential forest had decreased, while the area of potential grassland hand increased slightly. The habitat suitability of PNV was low in the northwest, high in the south and southeast. The potential temperate deciduous broad-leaved trees distributed in the southern plain of the LP had higher habitat suitability, while the potential grassland distributed in the northern and northeastern LP had lower habitat suitability. For each kind of PNV, the geographical space and priority restoration area occupied by its highest habitat suitability were significantly different. These reaserch results could provide a scientific basis for vegetation restoration and reconstruction in the Loess Plateau.