“Three rights separation” in pastoral area should not copy the experience in farmland completely owing to its particularity. Based on the land ownership theory in “Capital”,the application of analysis method of concreteness to abstraction,and the analysis on the characteristics of pasture resources in China,this paper elaborates on the institutional arrangement of the three rights separation of pastoral pastures. It further illustrates the three levels of connotation of the “three rights separation” of grassland in China’s pastoral areas from the decomposition of rights to the property right relationship on the basis of ownership,ultimately to its special production relations and communication relations. It then reveals the multiple goal orientations beyond the pursuit of exchange value,including the modernization of animal husbandry by marketization of land element,the realization of continuity of co-creation and co-sharing of pastoral grassland benefits,and economic and social transformation based on the protection of fundamental interests of pastoralists. It is pointed out that it is necessary to clarify the boundary of the collective ownership,the herdsmen’s contracting rights,and the management rights of the capital owner as the key points of reform to improve the actual system performance of the pastoral area.