The　Yellow　River　becomes　an　important　field　to　carry　out　river　basin　ecological　compensation　for　its　ecological　environment　is　becoming　worse　and　worse.　This　essay　aims　to　construct　the　ecological　compensation　mechanism　from　compensation　subject　and　object,　principle　and　standard,　compensation　type　and　several　problems　need　to　be　solved　properly　by　analyzing　the　current　situation　of　the　Yellow　River　basin　and　analyzing　the　necessity　of　ecological　compensation.　All　the　beneficiaries　and　polluters　should　provide　compensation　for　all　the　victims　and　protectors　according　to　river　basin　ecological　protectors＇　cost,　ecological　beneficiaries＇　situation　or　river　basin　repair　costs.　Fairness,　consultation　and　participation　and　combining　government　compensation　with　market　compensation　are　its　guiding　principle.　Teaching　protectors　or　victims　how　to　fish　is　much　better　than　giving　fishes　to　those.　This　essay　makes　a　contribution　to　realizing　sustainable　development　of　the　Yellow　River　basin　by　constructing　the　ecological　compensation　mechanism　scientifically.　©　(2012)　Trans　Tech　Publications,　Switzerland.