To estimate the potential risks of plant diversity reduction and soil salinization in the Bosten Lake Basin, the dynamic changes in the plant community and species diversity affected by soil moisture and salinity were analyzed from 2000 to 2020 based on remote sensing technology and field experiments. A model for simulating soil moisture, salinity, and the productivity of the plant communities was proposed. The results demonstrated that: (1) The soil moisture index (SMI) increased but the soil salinity index (SSI) decreased from 2000 to 2020 in the study areas. Accordingly, the plant community productivity indices, including the vegetation index (NDVI), enhanced vegetation index (EVI), and ratio vegetation index (RVI), exhibited an increasing trend. It was found that the Alpine meadow, Alpine steppe, and temperate steppe desert were the main types of plant communities in the study areas, accounting for 69% of its total area. (2) With increasing SMI or decreasing SSI, the vegetation productivity such as NDVI, RVI, and EVI all exhibited an increasing trend. With the increment of SMI, the species diversity indices of the Simpson, Shannon–Wiener, and Margalef exhibited a distinctly increasing trend. However, the indices of the Simpson, Shannon–Wiener, and Alatalo increased with the decreasing SSI. (3) The study discovered from the SVM model that the species diversity index was optimal when the soil salinity was 0–15 g/kg and the soil moisture was 12–30% in the study areas. It was found that soil moisture, not soil salinity, controls the plant species diversity change in the study areas. (4) A multiple linear regression model was established for simulating the effect of soil water-salinity on the vegetation productivity index at the watershed scale. The model indicated that higher salinity would reduce vegetation productivity and higher soil moisture would promote vegetation growth (except for RVI). The SSI had a higher impact on NDVI and EVI than the SMI in the study areas. This study would support decision-making on grassland ecosystem restoration and management in the other arid areas.