Abstract: Based on the interpretation of composite image of band 4, 3, 2 of Landsat 5 of 1995 and 2000 according to land resources classification system of 1:10 0000 in Resources and Environmental Database of CAS, this paper carried out the study on LUCC of Zhangye oasis in the middle of Hexi Corridor. Canonical correlation analysis was also applied to analyze the LUCC and driving factors and drew the contributions of each factor to the forming of LUCC. At the same time, the authors used the coefficient of canonical correlation analysis and redundancy degree to verify the analysis results. The results show that the main driving factors of the increase of urban area and built-up area and cropland are the increase of population, GDP and average income per capita etc. But for the decrease of grassland, woodland and water, the causes are relative complex. The decrease of precipitation, the increase of temperature and the enlargement of investment in agriculture may all contribute to it. At the same time, some cropland and unused land have converted to grassland and woodland, which were mainly caused by ecological security and policies etc. Analysis combined with the type of driving factors shows that the change in cropland structure is mainly the result of optimum economy welfare and the security of food. While, the cultivation of grassland and woodland usually results from the survival economy welfare. Also, optimum economy welfare contributes to it. In area with fragile eco-environment and intense external impact, the security of environment brings the recovery and reconstruction of woodland and the best utilization of unused land.