Scientific grassland ecological compensation mechanism is favorable for improving the grassland ecological environment and promote the sustainable development of animal husbandry. Combined with actual situations of Tibet, this paper discussed core issues in the design of grassland ecological compensation mechanism, including compensation purpose, compensation subject, compensation object, compensation standard, and compensation method. It pointed out that the design of mechanism is a complex and systematic project. Each issue is complex and varied. The government at all levels should be cautious and make scientific treatment, and should not apply a single solution for all issues.