Domestication of cereal crops has provided a stable source of food for thousands of years. The extent to which lignocellulosic crops will contribute to the world's renewable energy depends largely on how the new crops will be domesticated. Growing miscanthus as biofuel feedstocks on marginal and degraded land in northern and northwestern China offers an example for developing theoretical framework and practical strategies for energy crop domestication. The domestication should incorporate the highest possible genetic diversity from wild species, focus on the improvement of drought and cold tolerance especially in the stage of crop establishment, increase the efficiencies of water and nutrient uses and photosynthesis, adjust vegetative growing season according to local temperature and precipitation, and reduce or prevent seed production. Positive ecological effects on soil conservation, landscape restoration, carbon sequestration, and hydrological cycles should be maximized, while negative impact on biodiversity needs to be minimized. With the development of other sources of renewable energy, the role of lignocellulosic crops may evolve from primarily energy production to increasingly ecological restoration and biomaterial development. The integration of this new cropping system into the existing agriculture may open a new avenue to the long-term sustainability of our society.