Forest litter layer, as a unique layer of forest ecosystem, can intercept and absorb precipitation which is called litter water retention capacity. After precipitation, the temporary water of litters will continue to evaporate and infiltrate, adjust the water in the atmosphere and soil to facilitate the next water holding. Seven typical forests of Xiaowutai Mountain were taken as research objects, through combining field investigation and sampling and litter dehydration test which was more in line with the actual situation, the restoration characteristics of litter water holding capacity of different forests were comprehensively studied. The results showed that:(1) The water-holding capacity of litter layer gradually recovered with time. When the water loss test was carried out for 8 hours, the water holding capacity of the non-decomposed litter layer of all stands was restored to over 80%, and the water holding capacity of the litter in the semi-decomposed layer of the rest stands except pure forest of Betula was restored to over 60%. After 12 hours, the recovery trend of water-holding capacity of litter in each layer was gradually slow. (2) The laws of the non-decomposed, semi-decomposition litter layer water evaporation, infiltration and water holding process of seven typical stands were the same. The amount of evaporation and infiltration was larger in the early stage, and gradually decreased with the decrease of the amount of released water in the later stage. After fitting, the evaporation and infiltration amount were in logarithmic function relation with time, while the evaporation and infiltration rate were in power function relation with time.(3) Litter regulation and water storage effect of typical stands in Xiaowutai Mountain was generally characterized by the faster water retention and slower water evaporation and infiltration after water retention. Through cluster analysis, seven typical stands could be divided into three types of functional groups for regulating and storing water. In the future, functional groups should be taken into account in the tree species allocation of water source forests in this area or other similar habitats, which could realize the best ecological and hydrological functions of litter.