Castanopsis fissa is an important pioneer species commonly used in the restoration of degraded subtropical grassland in southern China. The study on the effects of litter coverage and watering frequency on the seed germination and seedling survival of C. fissa showed that the effects of litter coverage depended on soil moisture condition. When the watering frequency was 1 time per day, litter covering could restrain seed germination and increase seedling mortality; while watering 2 or 3 times per day, the covering would ameliorate soil moisture condition, and benefit seed germination and seedling establishment. The biomass of C. fissa seedlings was enhanced significantly by litter covering. It was suggested that keeping a litter layer on soil surface could benefit the seed germination and seedling survival of C. fissa to restore subtropical shrub land.