This paper analyzes the land use and land cover change (LUCC) of Wuliangsu Lake by interpreting Landsat5 TM images of 1987, 2000 and 2010. In the first stage (1987-2000), the area of mobile sandy land increased significantly, which signed that the environment of Wuliangsu Lake got worse. On the contrary, in the second stage (2000-2010), over 50% of mobile sandy land transformed into fixed sandy land. In addition, grassland gained a large percent from fixed sandy land and swamp. All of these changes signed that the environment of Wuliangsu Lake got better. In the two stages, the area of residential area and farmland increased obviously, large amount of grassland, swamp and fixed sandy land were converted into farmland, so we can predict that the main reason for land use changes in Wuliangsu Lake is agricultural development.