Grasslands in the Hulun Lake Basin have faced degradation for decades. Therefore, accurately discriminating grass species at a fine scale is vital for regional environmental protection. To overcome mixed-pixel interference and high spectral dimensionality, this study proposed a dual-domain decoupling framework, which spectrally employs a combined principal component analysis and pretrained random forest (RF) feature importance band selection (BS) method, and spatially integrates a mixed spatial downsampling (MDS) mechanism. Multiple machine learning models were applied to classify key dominant forage species (Leymus chinensis; Stipa krylovii) and degradation indicator species (Allium polyrhizum; Allium ramosum). SHapley Additive ExPlanation (SHAP) model interpretability analysis was then employed to identify high-contribution bands, and the proposed method was systematically benchmarked against state-of-the-art (SOTA) deep learning architectures. Results showed that: 1) Key bands with high influence on model training were primarily located in the red-edge region (650–720 nm) and near-infrared (NIR) plateau (900–1000 nm) regions; 2) the proposed BS & MDS method significantly improved classification performance, with both RF and artificial neural network achieving the highest overall accuracy of 0.97, which was higher than those of the evaluated SOTA models; 3) sensitivity analysis indicated that our framework maintained consistent results under various training sample ratios while requiring minimal computational time; 4) ecologically, dominant forages (LC, SK) had better separability, while grazing disturbance drove distinct intraclass multicenter spectral clustering; 5) red-edge bands dominated species discrimination in SHAP analysis with higher SHAP values than those bands at the NIR plateau. This study provided a highly robust, computationally efficient, and ecologically explainable method to accurately discriminate grass species in Hulun Lake Basin at fine scale, supporting the precision management of grassland degradation.