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The Grain for Green Project (GGP) has considerably improved the vegetation cover of the Loess Plateau, as well as changed the carbon and water coupling process of local vegetation to a certain extent. Water use efficiency (WUE) is a crucial measure for evaluating ecosystem responses to global climate change and is a key indicator of the carbon–water coupling between terrestrial ecosystems and the environment. A comprehensive understanding of the impact of vegetation reconstruction on WUE on the Loess Plateau is of great significance to the vegetation growth and contribution to sustainable of the Loess Plateau. In recent years, scholars have gained a more comprehensive understanding of the distribution and drivers of WUE on the Loess Plateau. However, through the study of carbon and water coupling in the Loess Plateau, it is found that the effects of different vegetation restoration levels on WUE are still to be studied in depth in terms of spatial and temporal heterogeneity and long timeseries. In this paper, we analyzed the trends of Normalized Difference vegetation cover (NDVI) and WUE from 2001 to 2010 and 2011 to 2020, respectively, to research at the WUE of the vegetation in this area in relation to vegetation restoration. It was found that the Loess Plateau's vegetation WUE rose from 2001 to 2020 at a rate of 0.023 g C kg−1 H2O per year, and that the increase from 2011 to 2020 was more significant than the growth from 2000 to 2010. The Loess Plateau's area with a growing trend in vegetation water use rate increased from 77.12% in 2001–2010 to 88.63% in 2011–2020, with the majority of the increased area occurring in the northeastern Inner Mongolia region. After 20 years of the reforestation project, the area where NDVI and WUE increased simultaneously accounted for 71.54% of the Loess Plateau, the area where NDVI increased but WUE decreased accounted for 10.95% of the Loess Plateau, and the area where NDVI increased but WUE decreased accounted for 7.15% of the Loess Plateau. The correlation between temperature precipitation and WUE was not significant for the whole Loess Plateau, further indicating that the increase in vegetation cover was the main reason for the increase in vegetation water efficiency. Therefore, the effect of vegetation cover on WUE should be fully considered when vegetation restoration is carried out on the Loess Plateau. [ABSTRACT FROM AUTHOR]