Abstract: Fence enclosure is a simple and effective method for grassland restoration and is widely used for this purpose in the steppes of north China. Soil pH, nutrients, salt content, microbial biomass, and enzyme activity of soils in heavily degraded grassland in the Horqin area were compared with an adjacent plot enclosed for 7 years. Fence enclosure decreased soil pH and salt content and increased soil organic matter content, total N and P, and available N and P. Microbial biomass C, N, and P contents increased along with increases in urease, phosphomonoesterase, dehydrogenase, and protease activities, while polyphenol oxidase activity decreased. These results indicate that fence enclosure shows good prospects for grassland soil improvement in the Horqin area.