In alpine regions of the Qinghai-Tibetan Plateau of China, perennial vetch (Vicia unijuga A. Br.) productivity is often low and variable, constrained by the cold and erratic precipitation environment. The aim of the current study was to identify the soil-environmental modifications needed in harsh alpine environmental conditions for improvement of perennial vetch growth, forage biomass production and seed yield. A 3-year field experiment was conducted in an alpine region of China to evaluate the effects of modified soil temperature and moisture conditions generated by three mulching treatments – plastic film mulching (FM), removal of plastic film mulching at the 30% flowering stage and barley straw mulching – on perennial vetch productivity. Higher mean soil temperature and soil water content were recorded in the FM treatment than in the control and other treatments. This enhanced perennial vetch growth, as indicated by higher photosynthetic rate, higher leaf area index and greater above-ground dry matter, and thus higher seed yield and water productivity. Examination by multiple linear regression showed the relative contribution of mean soil temperature to the variations in photosynthetic rate, above-ground dry matter and seed yield were greater than soil water content, whereas the reverse occurred in seeds/pod. In conclusion, the FM treatment provided adequate soil temperature and water resources to improve photosynthetic rate, above-ground dry matter, seed yield and water productivity, and thus increased the productivity potential for perennial vetch in the alpine region. The current research provides scientific support for large-scale perennial vetch cultivation and management in alpine regions.