Despite their small size, cryptogams (lichen, liverwort, and moss) are important for ecosystem stability. Due to their strong stress resistance, cryptogams often cover extreme environments uninhabitable for vascular plants, which has an important impact on the material cycle and energy flow of various terrestrial ecosystems. In this article, we review and discuss the effects of cryptogams on soil properties (moisture and fertility) and vascular plant regeneration over the past two decades. Cryptogams strongly affect soil water content by influencing precipitation infiltration, non-rainfall water input, soil evaporation, soil water holding capacity, and soil permeability, ultimately helping to reduce soil water content in areas with low annual precipitation (600 mm) or where the soil has other water sources, the presence of cryptograms is conducive to soil water accumulation. Cryptogam plants can increase soil fertility and the availability of soil nutrients (TOC, TN, TP, TK, and micronutrients) in harsh environments, but their effects in mild environments have not been sufficiently investigated. Cryptogam plants exert complex effects on vascular plant regeneration in different environments. The primary influence pathways include the physical barrier of seed distribution, shading, allelopathy, competition, influences on ectomycorrhizal development and individual reproduction, and the regulation of soil water content, temperature, and nutrients. Keywords: moss; lichen; soil water content; soil fertility; vascular plant regeneration.