Soil erosion models are efficient tools for quantifying regional soil erosion, estimating long-term soil erosion rates, and assessing the effects of land surface changes on soil erosion and sediment yield. These models offer significant advantages over costly and geographically limited field monitoring. These models are crucial for understanding hydrological and sediment dynamic on the Loess Plateau, which is highly vulnerable to soil erosion due to its complex topography, high erodible loess and frequent storms. To address the need of event-based simulations that can capture the impacts of widespread conservation practices, this study developed a novel distributed hydrology and soil erosion model. The model couples the Vertical Mixed Runoff Model (VMM) with the Morgan-Morgan-Finney (MMF) erosion model and integrates a specialized module to explicitly simulate the interception effects of terraces, which are a key soil and water conservation measure in the region. This integrated model simulates three key components at the flood-event scale, including runoff generation, soil erosion, and sediment transport. The model was calibrated and validated using data from nine flood events in the Xichuanhe catchment, a typical tributary of the Yanhe River on the Loess Plateau. The results demonstrate a high level of accuracy in runoff simulation, achieving Nash-Sutcliffe Efficiency (NSE) coefficients of 0.82 and 0.67 for the calibration and validation periods, respectively. Relative Peak Errors (RPE) were consistently below 23%, indicating a close match between simulated and observed hydrographs. For sediment simulation, the model effectively captured the overall dynamics with an average NSE of 0.80 and RPE between 2.3% and 18.7% during calibration periods, though with some discrepancies during validation periods. The model confirms the significant role of terraces in reducing runoff and sediment yield. On average, terraces could reduce total runoff volume by 12.1% and sediment yield by 17.2% during flood events. These findings demonstrated the model's effectiveness for hydrological and soil erosion simulation and its potential in evaluating soil and water conservation measures on the Loess Plateau. The model can offer a valuable tool for quantitatively assessing the effectiveness of soil and water conservation measures in this critical region and similar semi-arid environments.