As one of the representative regions of the third pole on Earth, Sanjiangyuan has unique species and ecosystems composed of these species. It develops and maintains large areas of original alpine ecosystem, and is an important source of fresh water for China and Asia. It is also the source and key area of ecological protection and high-quality development in the Yellow River Basin. Ecosystem services, natural landscapes, and biodiversity have conservation value of national and global significance. Grassland is the main type of vegetation in the Sanjiangyuan region. Due to many ecological, environmental, and social problems caused by inappropriate grassland use, grassland management and governance is not only a pastoral resource management issue, but also an issue of river basin management of the Yellow River, the Yangtze River, and the Lantsang River Basins. This article summarized the present situation, problems, and demands of grassland management in the Sanjiangyuan region. Multi-objective management goals were proposed based on the ecosystem service functions of the grassland and human demands for production-ecological protection-livelihood security. A multi-objective management framework was put forward, and the regulatory approach and technical support for the multi-objective management of grassland in the Sanjiangyuan region were established. These will provide an important inspiration and guidance for the sustainable ecological development of the region, the construction of national parks, the development of ecological protection and high-quality development of the Yellow River Basin, and subsequent formulation of relevant policies.