Random amplified polymorphic DNA was used to assess the level of genetic diversity and genetic structure of Stipa krylovii (Gramineae), an important dominant species in the northern grasslands of China. Genetic diversity was low within S. krylovii populations, and diversity at the population level was associated with precipitation and cumulative temperature variations. There was much genetic differentiation among populations and among habitats as well. A Mantel test indicated no significant correlation between genetic distance and geographic distance of populations. A nonmetric multidimensional scaling analysis revealed some spatial relationships among the 90 individuals in a two-dimensional plot. Habitat fragmentation and degradation throughout the geographic range of S. krylovii could account for the low genetic diversity and high genetic differentiation of the species. Such information will be useful for conservation managers trying to plan an effective strategy to protect this important species.