The residual strength of slip zone loess is strongly affected by the moisture content. To explore such an effect, slip zone loess obtained from Baqiao landslide was used in ring shear tests under moisture content ranging from 6% to 29%. Laboratory tests were utilized for the determination of the stress–displacement relationship and residual strength parameters for the effect of moisture content in loess. The experimental results showed that the residual strength generally decreases with increasing moisture content. In addition, for a given shearing rate, the residual strength at any moisture content is approximately proportional to the normal stress. The stress fluctuation of shear stress was found to be greater with high shearing rates. Furthermore, the effect of moisture content on the residual strength parameters (cohesion and friction angle) was presented: the residual cohesion of slip zone loess was observed to increase with moisture content to a certain limit that approaches the plastic limit, above which it decreases. Also, the friction angle of slip zone loess was found to decrease with increasing moisture content. Additionally, due to the increase of the moisture content, the scratch color on the shear surface changed from the original color yellow to brown and the thickness of the shearing band of samples reduced. Finally, the mechanism of the influence of moisture content on the macroscopic morphology of the shear surface was also analyzed and illustrated. The study may provide a basis for understanding the shear behavior of slip zone loess under different moisture contents, as well as guidelines for loess landslide stability prevention and prediction.