Land degradation is one of serious ecological and environmental problems, and it directly affects the sustainable socioeconomic development of the Fenhe River basin. Based on the recent field data combined with related research literatures and basin environment characteristics, by means of ecological economic loss assessment methods, the paper studied the status and dynamic changes of land degradation in the Fenhe River basin, and accounted the economic loss of land degradation in 2010. The study showed that: (1) The economic loss by land degradation in the basin was up to 3.83×10⁹ yuan in 2010. The economic loss by soil and water loss was the most serious(accounted for 61.79%), which was equal to 2.37×10⁹ yuan. The economic losses by aeolian desertification and salinization were 2.31×10⁸ and 1.23×10⁹ yuan, respectively.(2) The economic loss by land degradation reached 0.77% of GDP in the basin. The upper reaches of the Fenhe River (accounted for 1.45%) were the key rehabilitation region. The economic loss by land degradation was equal to 14.58% of primary industry, which has affected the sustainable socioeconomic development of the basin. Economic loss of land degradation per capita in the Fenhe River basin was about 290.08 yuan, which restricted people's poverty relief, so control of land degradation should be strengthened.