Desert vegetation in the outer transition zone of an arid oasis serves as a protective barrier against wind and sand, safeguarding the oasis ecosystem. However, intensive agricultural water usage within the oasis has led to water depletion, posing a threat to the survival and growth of desert vegetation, as well as the associated increase in wind and sand phenomena. To ensure the sustainable distribution of water resources and maintain the stability of the oasis peripheral ecosystem, this study aimed to investigate the relationship between the ecological water demand of desert vegetation and its effectiveness in preventing wind erosion. Through a combination of field sample tests, field pit tests, and data analysis, this research focused on Haloxlon ammodendron, the most prevalent species on the oasis periphery, to explore the intricate relationship between its ecological water demand and resistance to wind erosion. The results showed that medium-vegetation-coverage soils exhibited a higher soil moisture content (7.02%) compared to high-vegetation-coverage soils (1.57%) and low-vegetation-coverage soils (3.41%). As the soil water content decreased, the growth rate of H. ammodendron’s plant height, new branches, and crown width decelerated. The ecological water requirement of H. ammodendron during its growth period was 70.95 mm under medium-vegetation-coverage conditions, exhibiting a significant increase of 14.6% and 12.3% compared to high- and low-vegetation-coverage conditions, respectively. Meanwhile, H. ammodendron exhibits remarkable wind erosion prevention effects in moderate coverage conditions, resulting in a significant reduction in surface sand collection and sand transport by 53.15% and 51.29%, respectively, compared to low vegetation coverage; however, no significant difference was observed when compared to high vegetation coverage. The SEM model results revealed that soil water content had an indirect effect on sand transport (R2 = 0.90) and sand collection (R2 = 0.96) through three pathways of action, namely: volatile water content–crown growth rate–wind speed–sediment discharge; volatile water content–plant height growth rate–vegetation coverage–wind speed–sediment discharge; and volatile water content–plant height growth rate–vegetation coverage–sediment accumulation. This study provides valuable insights for the scientific formulation and implementation of strategies aimed at protecting desert vegetation.