Abstract: This paper constructs two dynamic game model to analyze the contradiction between the nature reserve and the surrounding farmers from the perspective of ecological compensation and alternative livelihood, through the analysis and discussion on the game results, it draws a conclusion that the impact factors of the reserve management agencies to implement ecological compensation policies and help farmers to carry out alternative livelihood. Finally, it proposes the surrounding farmers to actively cooperate and consult with the reserve; the reserve to share the interests, initiatively, and to help the surrounding farmers to develop livelihood alternatives, are the key to solve the contradiction between the two sides and realize the common development.