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Eco-environmental degradation seriously effects the sustainable development of social economy and the survival to development of human beings. In China, eco-environmental degradation in the source region of the Yellow River is a very serious problem in ecology, social and economics. The article chooses the case study on Madoi County which is the typical area in source region of Yellow River. Results show that the physical environment of this area is evidently harsh and is extremely fragile. During the 10 years from 1900 to 2000, grassland area, wetland and water area decreased by 2.9%, 38.53% and 9.16% respectively in Madoi County. On the contrary, desertification land, naked area, frozen land and salina area increased by 27.05%, 17.12%, 108.63%, and 144.17% respectively.