With the implementation of the policy of converting slope farmland into forest and grassland, the project has achieved great successes in China. Satellite data of CBERS are used to monitor landuse change for nearly 10 years in the lower reaches of Yanhe River in northern Shaanxi Province, and the change in the spatial st ructure are quantified as well. Result s show that forest was increased by 8 %, grassland was increased by 20%, and farmland was decreased by 38%. 1.03% of farmland was converted into woodland, and 57.49% of farmland, into grassland. Dynamic monitoring of changes in the region’s ecological environment has been achieved, and a viable way to monitor and survey ecological environment and converting slope farmland into forest and grassland in the loess hilly and gully area has been provided.