Abstract: The typical grasslands of Xilinguole League in Inner Mongolia were used as the research region to obtain sample data and statistical information on herdsmen for studying the behavior differentiation mechanism and management strategies of grassland resources utilization. Due to the different scales of livestock farming, there are differences in financing, pasture transference, and overload operation of households, so for regression analysis on the panel data production function model, households were divided into large and small-household groups to determine differences in scale and elasticity of production factors. The quantitative analysis of household production behavior indicated that the imminent mechanism of household behavioral difference in grassland resources utilization refers to the difference in relevance among households financing capacity, production behavior, and grassland resource utilization behavior. This is based on the special asset properties of livestock, and the external driving conditions refer to market-featured management and grass-livestock balance management. Contradictions exist between present grassland system management policy and households different behaviors, so several targeted policy recommendations are advanced, e.g. to: establish the pasture transference allowance system to improve the current situation: consider households overload behavior difference: mitigate the punishment of illegal overload, and to focus on the management of legal overload limitation; develop modern ecological animal husbandry, strengthen skill training of animal husbandry and employment training of non-animal husbandry.