The Loess Plateau of China has experienced a lengthy drought and severe soil erosion.Changes in precipitation and land use largely determine the dynamics of runoff and sediment yield in this region. Trend and mutation analyses were performed on hydrological data(1981–2012) from the Yanwachuan watershed in the Loess Plateau Gully Region to study the evolution characteristics of runoff and sediment yield. A time-series contrasting method also was used to evaluate the effects of precipitation and soil and water conservation(SWC) on runoff and sediment yield. Annual sediment yield declined markedly from 1981 to 2012 although there was no significant change in annual precipitation and annual runoff. Change points of annual runoff and annual sediment yield occurred in 1996 and 1997,respectively. Compared with that in the baseline period(1981–1996), annual runoff and annual sediment yield in the change period(1997–2012)decreased by 17.0% and 76.0%, respectively, but annual precipitation increased by 6.3%. Runoff decreased in the flood season and normal season, but increased in the dry season, while sediment yield significantly declined in the whole study period. The SWC measures contributed significantly to the reduction of annual runoff(137.9%) and annual sediment yield(135%) and were more important than precipitation. Biological measures(forestland and grassland) accounted for 61.04% of total runoff reduction, while engineering measures(terraces and dams) accounted for 102.84% of total sediment yield reduction. Furthermore, SWC measures had positive ecological effects. This study provides a scientific basis for soil erosion control on the Loess Plateau.