[Objective] The land use situation and its terrain gradient distribution pattern in the alpine canyon area was analyzed to clarify the functional zoning in order to provide references for the sustainable use of land resources in similar areas.[Methods] Taking Lushui City of Yunnan Province as an example, the distribution and change characteristics of land use on the terrain gradient were analyzed by using terrain niche index and distribution index in the alpine canyon area.[Results] ① The land use of Lushui City had a significant dominant distribution characteristic. From 2000 to 2018, the proportion of woodland as the dominant land use type increased from 77.50% to 84.49%. Construction land also increased rapidly, from 2 804.49 hm² to 4 785.65 hm². Unused land, arable land, and grassland gradually converted to woodland, and the area decreased by 14 368.38, 5 171.68, and 4 049.54 hm², respectively. The water area was stable around 900 hm². ② The hierarchical differences in terrain gradient in the land use pattern of Lushui City were remarkable. Woodlands showed a dominant position in the entire terrain gradient. Water, construction land, and arable land were widely distributed in low and middle terrain niche index area. The dominant area of the grassland was in the medium terrain niche index area with a high slope but low elevation. Unused land dominated in the high terrain niche index area. ③ Based on terrain differentiation laws, Lushui City could be divided into 4 major functional areas:river valley intensive development area, steep slope comprehensive treatment area, mid-alpine ecological promotion area, and mountaintop ecological closed area.[Conclusion] The land use in the alpine canyon area has formed a unique multi-level distribution pattern on the terrain gradient, with the potential for zoning development, and should be corresponding to different land-use development strategies.