Grazed grasslands are complex ecosystems, and careful and responsible management is essential for their growth and maintenance. This chapter examines the inter-relationship of species, microbial activity, nutrients and environmental factors in restoring and maintaining their health, sustainability and productivity. The chapter outlines the key factors in restoration of degraded grasslands, such as promoting both the ecosystem’s biogeochemical processes and internal grass mechanisms that gradually alter grassland species composition. The chapter also looks ahead to future research trends in this area.