Abstract: The fishing ban compensation policy in the Yangtze River has changed the livelihood strategies of retired fishing households. Effectively analyzing the livelihood capacity changes of households under the policy impacts is the premise to improve livelihoods. Taking the retired fishing households of Anhui, Jiangsu and Hubei Province as research objects, this paper constructs the livelihood capital evaluation index system to analyze the policy effects on livelihood capitals from total amount, structure and mobility before and after retiring. The results indicate that: (1) The total livelihood capital index of all objects has increased significantly, and the human capital, material capital, financial capital and social capital indexes increased significantly. (2) The households’ livelihood capital coupling coordination index has increased significantly, and the livelihood capital structure has changed from imbalance to coordination. (3) The livelihood capital of retired households has high relative mobility, which reduced the gap between the rich and the poor. (4) The heterogeneity exists in policy effects among different regions. The livelihood capitals and coupling coordination index of households in Anhui Province have been significantly improved, and the mobility of livelihood capital is the highest; The psychological capital index of households in Jiangsu and Hubei Province decreased significantly. There is no significant difference in financial capital index, total livelihood capital index and coupling coordination index in two periods, and the livelihood capital mobility  of households in Jiangsu Province is the lowest. In general, the implementation of the ecological compensation policy in the Yangtze River has promoted the households’ livelihood sustainability, but the stagnation of livelihoods, the social harmony and stability of retired areas and the new round stratum solidification of the livelihood capital are still issues that need continuous attention in the ten-year fishing ban.