Many soil and water conservation measures (SWCM) have been implemented in the Loess Plateau of China, and they have an impact on ecosystems all levels and involve complicated mechanisms. Previously, studies typically focused on a single factor's effect on diversity or productivity. With this background, the current investigation embarked on an extensive study, with vegetation survey conducted in the no measure plots (NM), vegetation measure plots (VM) and engineering measure plots (EM) in the Loess Plateau of China. We used structural equation models (SEM) to explain the mechanism by which SWCM affects plant productivity and diversity. VM have direct effects on plant diversity, and EM have direct effects on soil properties and community structure. The two measures also had indirect effects on plant functional traits and community structure. The results show that the changes in plant functional traits and community structure by SWCM decreased plant diversity, whereas the increase of productivity was primarily dominated by improvements in community structure, and we conclude that variability in plant diversity and productivity across different measures on the Loess Plateau was primarily due to the responses of different plants to variable soil properties and the community responses. It was also emphasized that vegetation measures were beneficial to the increase of biomass per plant, while engineering measures were more beneficial to the growth of dominant species. These findings provide a theoretical foundation for vegetation management and restoration after the application of different SWCM.