The pine caterpillar, Dendrolimus tabulaeformis is one of the most important pests on Pinus tabulaeformis and other pine species in North China. In the present study, effects of relative humidity (RH) on the development and survival of pine caterpillars and soil moisture (SM) on their diapausing larvae were investigated. Low RH (20%) deferred the development of eggs and larvae, reduced egg hatching and larval surviving compared to 40%, 60% and 80% RH. Both low (20%) and high (100%) RH reduced egg hatching, but only 20% RH deferred the development of larvae, prolonged developmental duration and reduced the body mass and body length of larvae. The SM influenced the survival of diapausing larvae significantly. The dry treatment significantly reduced the supercooling points (SCPs), whereas increased the mortality and reduced body mass from 56.9 to 36.5 mg and body water content from 78% to 63% after 2 weeks’ exposure. Therefore, higher RH is more favorable for the development of early instars and survival of diapausing larvae of the pine caterpillars.