Payment for Ecosystem Services (PES) Schemes have been globally used as one of the most innovative solutions to reduce environmental degradation. Although most of the existing experiences of PES implementation are related to the agricultural, forestry and marine sector, and the application of PES in rangeland ecosystem is limited. Therefore, this study is aiming to investigate the feasibility of PES approach, based on the erosion, sediment and surface runoff control services in Iranian rangelands, case study of Arnavah North Khorasan basin. For this purpose, the role of rangeland vegetation cover in ecosystem service provisions were used to quantified using RUSLE/SEDD and SCS-CN models and then the economic value of these functions were estimated using replacement cost method and CVM. The results showed that rangeland vegetation cover plays an important role in reducing and controlling soil erosion, sediment yield and surface runoff, and by considering the replacement construction cost and CV method the total economic value of the rangeland vegetation cover were estimated to be 461 and 41.3 billion rials/year respectively. Then, by comparing erosion, sediment and surface runoff in different grazing intensities in physical homogeneous units in traditional sanctums, the role of each livestock unit in reducing of ecosystem services was determined and an executive framework of PES was presented. The current ecological condition of the vegetation types was considered as the baseline, and minimum and maximum payments were considered equal to the livestock reduction compensation and the total value of the increased ecosystem services as a result of PES implementation, respectively. Results indicate that designing the practical steps of PES schemes is a complicated task despite the simplicity of the concept, the lack of clear property rights can increase the complexity of the project and multiply the costs, and also commodifying ecosystem functions as ecosystem services is a utilitarian approach that restricts the intrinsic motivations in a way that in the long run may be counterproductive for conservation purposes. In the next section, the preferences of local beneficiaries to participate in livestock reduction program was investigated. The results showed that stockholders prefer PES implementation to current conditions of stock farming. The average willingness to accept (WTA) of livestock reduction was 2400000 Rials at the moderate conditionality, and direct individual payments affect participating preference. Finally, identification and prioritization of the weaknesses, strengths, opportunities and threats of PES approach implementation through interviews with experts from different parts of North Khorasan province showed that the nature of PES schemes, payments for ecosystem service provisioning and encouraging of rangeland improvement activities is the most important strength factor, and severe dependence of local stakeholders on rangelands and traditional stock farming was identified as the most important deterrent factor. Also, recognizing ownership of rangelands and ecosystem services (final score of 0.19) and unusual decision making in rangeland traditional sanctums (final score of 0.15) was evaluated as the most important opportunities and threats respectively. Finally, it can be stated that although there are many challenges and obstacles facing the implementation of PES scheme, considering all different social, institutional and practical aspects can be one of the most effective options for improving rangeland conditions.