ABSTRACTThe crucial role of soil water retention and storage in soil hydrology and the water cycle is well established. However, in sensitive and degraded ecosystems like alpine meadows, the effectiveness of revegetation in enhancing these critical functions remains understudied. This study investigates the effects of revegetating severely degraded hillside meadows with artificial grasslands on soil water retention and storage capacity in the Qinghai‐Tibetan Plateau. Soil analyses at a depth of 0–20 cm revealed significant improvements in soil properties after revegetation, with increases in soil organic matter content (86.8%), total porosity (11.9%), capillary porosity (31.6%), and clay content (13.5%). Both the saturated hydraulic conductivity (Ks) and field capacity (FC) increased markedly, by 9.7% and 63.7% in the upper layer (0–10 cm) and 21.7% and 69.6% in the lower layer (10–20 cm), respectively. Structural equation modeling identified bulk density, root mass density, FC, capillary porosity, and clay content as the dominant direct factors influencing Ks with path coefficients of −0.56, 0.30, −0.53, 0.57, and −0.12, respectively, while vegetation cover and aboveground biomass were found to have indirect influences. These findings demonstrate that revegetation with artificial grasslands effectively improves soil water retention and storage capacity in degraded hillside alpine meadows by regulating key soil hydraulic and physical properties. This enhanced water‐holding capacity has significant implications for understanding the dynamics of revegetation by artificial grassland establishment in improving ecosystem health and eco‐hydrological functions in these vulnerable environments. Furthermore, the study provides valuable insights and a theoretical basis for developing ecological restoration solutions for degraded hillside meadows in other alpine regions.