To elucidate the photosynthetic physiological mechanisms influencing alfalfa (Medicago sativa L.) yield and quality under varying planting densities, the cultivar ‘Zhongmu No.1’ was used as experimental material. The effects of different row spacing (R1, R2, R3) and seeding rate (S1, S2, S3, S4, S5) combinations on chlorophyll content (ChlM), nitrogen flavonol index (NFI), chlorophyll fluorescence parameters, forage quality, and hay yield were systematically analyzed. Results showed that alfalfa under R1S3 treatment achieved peak values for ChIM, NFI, EE, and hay yield, whereas R1S4 treatment yielded the highest Fv/Fm and CP content. Redundancy analysis further indicated that yield was most strongly associated with ChlM, NFI, Y (II), and qP. Y (II), and qP significantly influenced alfalfa forage quality, exerting negative effects on ADF and NDF, while demonstrating positive effects on CP and EE. In conclusion, narrow row spacing (15 cm) with moderate seeding rates (22.5–30 kg·hm−2) optimizes photosynthetic performance while concurrently enhancing both productivity and forage quality in alfalfa cultivated, establishing a theoretical foundation for photosynthetic regulation in high-quality and high-yield alfalfa cultivation.