According to fixed-position data for 1985–2003 from nine runoff plots of Caijiachuan watershed which lies in Jixian County of Shanxi Province in Loess area, this paper studied the relationship between vegetation and runoff and sediment production in sloping lands in detail, which helps to provide scientific basis for vegetation re-construction and studies on environmental transformation of water and sediment in watersheds of Loess area. Although, many study results testify that forest vegetation has an important function in soil and water conservation and cutting runoff, the effect of vegetation on runoff and sediment transmission is complicated, and this needs to be studied in depth. The results of the paper showed the following. Firstly, the natural secondary forest performs better function of soil and water conservation than artificial Robinia pseudoacacia forest, and runoff and sediment produced in the former in individual rainfall were 65%–82% and 23%–92% of those produced in the latter. At the same time, better correlative relationship between runoff and sediment production and rainfall and rainfall intensity were testified by multiple regression, but the correlation decreased gradually with the increase of canopy density of forest. Secondly, the difference of runoff and sediment production in several land use types was very distinct, and the amount of runoff and sediment produced from Ostryopsis davidiana forest and natural secondary forest were the least, and runoff and sediment produced from in artificial Robinia pseudoacacia forest and Pinus tabulaeformis forest were 5-fold as much as those from O. davidiana forest. Besides, runoff and sediment produced in mixed planting of apple trees and crops were 16.14-fold and 2.96-fold than those of O. davidiana forest, respectively, but the amount decreased obviously after high-standard soil preparation in the case of the former. Thirdly, based on gray cognate analyses of factors affecting runoff and sediment production in sloping land, the factors of stand canopy density and herb and litter biomass were the most significant ones, whose gray incidence degree exceeded 0.6. Therefore, mixed forest with multi-layer stand structure and shrub forest should be developed in vegetation re-construction of Loess area, which will help to increase coverage and litter thickness in order to cut down the runoff and sediment dramatically in sloping land.