Land degradation usually leads to the loss of ecosystem services, which may threaten social well-being. There is no approach to identify and manage all ecosystem services based on their importance in degradation processes and social systems. This study aimed to link ecosystem services to social well-being in order to assess rangeland degradation. Eleven ecosystem services (forage production, water yield, edible plants, fuel, medicinal plants, pollination, gas regulation, soil resistivity to erosion, soil fertility, scenic beauty, and recreation) were assessed in semiarid rangeland near Bardsir city, Kerman Province, southeast Iran. There were significant differences between the rangeland types in providing ecosystem services (p < 0.05). Four criteria and 17 indices of social well-being were weighed according to their importance for local stakeholders. Rangeland degradation was estimated using the weight of the indices for social well-being and ecosystem services. Discriminant analysis indicated that supporting services (soil fertility) and provisioning services (water yield and forage production) had the greatest impact on rangeland degradation, which is related to food security in social well-being. Ecosystem services and social well-being declined in medium and severe degradation due to plant composition change and overgrazing based on principal component analysis (PCA). More than 70% of the watershed has been highly and severely degraded. There was a trade-off relationship between ecosystem services and social well-being in very severely degraded areas because of social well-being promotion due to agriculture expansion. Based on our approach, the loss rate of the ecosystem services and social well-being indices in each degradation category is a good guide for management programs and decision-makers to meet both the needs of the people and the preservation of ecosystems.