Seasonal migration is a widely distributed livelihood strategy in pastoral regions worldwide. To improve livelihood levels and prevent grassland degradation, sedentarization has been broadly adopted. However, the dependence of pastoral livelihoods on ecosystem services after settlement has scarcely been studied. Here, we develop a new framework to visualize the contributions of grassland ecosystems, farmland ecosystems and socioeconomic systems to pastoral livelihoods and take Fuyun County, a typical pastoral county in northwestern China, to analyze whether sedentarization decreases the dependence of pastoral livelihoods on ecosystem services by comparing the livelihoods of different household types. Settled households derive less income from ecosystem services than household types that practice grazing. However, settlement has not necessarily reduced the share of income from ecosystem services. Settled household types still rely on grassland ecosystems, especially sedentary farming households. Although pastoralists have undergone tremendous livelihood transitions, livestock have always been the main medium by which pastoral households rely on ecosystem services and the main source of income. Our results emphasize the importance of monitoring pastoral livelihood dynamics and implementing matching development strategies after settlement to reconcile pastoral livelihoods and ecosystem conservation.