Aims <p>The individual effects of grazing and <i>Caragana korshinskii</i> on soil seed banks (SSB) have been extensively investigated. However, the interactive effects of grazing and <i>C</i>. <i>korshinskii</i> on SSB remain unexplored, particularly in the context of global woody plant invasions.</p> Methods <p>We conducted an experiment in a typical steppe to assess the effects of grazing and aqueous litter extract of <i>C</i>. <i>korshinskii</i> from different parts on SSB.</p> Results <p>Our results demonstrated that the aqueous litter extract of <i>C</i>.&#xa0;<i>korshinskii</i> significantly suppressed seedling emergence density, species richness, and seedling biomass (<i>P</i> &lt; 0.05). The inhibitory effects descended in the order: belowground parts (BP) &gt; whole parts (WP) &gt; aboveground parts (AP). Compared to the control, BP extracts caused significant reductions in seedling emergence density, species richness, seedling aboveground biomass, and seedling belowground biomass by 28.9%, 36.6%, 29.0%, and 31.1%, respectively. These effects were concentration-dependent, with low concentrations enhanced these parameters, whereas high concentrations inhibited them. Grazing significantly alleviated this suppression, e.g., compared to non-grazing conditions, grazing increased seedling emergence density, species richness, and seedling belowground biomass in the presence of the extracts by 52.6%, 23.7%, and 46.3%, respectively.</p> Conclusions <p>These findings provide important guidance for regulating aboveground plant community succession and offer a theoretical basis for sustainable grassland management.</p>