Understanding the interaction between large herbivores and pasture production, especially with respect to the grazing optimization hypothesis, is critical for pasture management and generating theoretical and testable predictions. However, the optimization hypothesis remains contradictory in alpine meadows on the Qinghai-Tibet Plateau (QTP). In this study, we tested the grazing optimization hypothesis using four yak-grazing intensities (no grazing, light grazing, moderate grazing and heavy grazing) in alpine meadow habitats from 2015 to 2017. The results indicated that species diversity did not differ significantly among grazing regimes during the experimental period. However, the aboveground net primary production (ANPP) under moderate grazing consistently significantly exceeded that in control enclosures over 3 years, confirming the grazing optimization hypothesis. Levels of overcompensation varied among grazing intensities and years, and grazing-induced plant compensation may only occur in the short term. The enhanced regrowth of Poaceae and Cyperaceae induced by yak grazing might contribute to the overall level of overcompensation by plant community. Our results strongly support the grazing optimization hypothesis in the context of alpine meadows grazed by yaks, emphasizing the complex interactions between ANPP, herbivores and other ecological factors in alpine meadows on the QTP. These findings provide new insights for the development of an ecological conservation strategy that will help restore this fragile ecosystem and balance the seemingly incompatible requirements of animal husbandry.