Abstract: As the base of human survival, land use and land cover change are the top concerns in the study of global change. The Jiaozhou Bay is excellent in its nature and has great developing potentials, but land resources and developing space are limited, that has become the bottle neck of the sustainable economic development in the region. Remote sensing images are the main data source for land use. This paper deals with the pretreatment of atmosphere correction and DEM synthesis for remote sensing images. Through the treatment, we can obtain a high quality base map to satisfy the requirements of users. Combined with the results of coastal survey in the Jiaozhou Bay, we established a classification system of remote sensing for land use and land cover study. Interpretation was carried out with Landsat TM/ETM + image data through man-computer interaction. As the result, the pictures of land use for the years from 2000 up to 2009 were gained. Then using Arcgis space analysis, we monitored the dynamic change in land use/cover change in the region. Results showed that during the period from 2000~2009, the absolute quantity of farmland had obviously decreased, while the land for residence and transportation increased. Such a change will certainly give impact to food security, ecological environment protection and socio-economic development. There is a need to further explore a sustainable land use mode so as to find a way for rationale use of land and economic development in a win-win manner.