Remote Sensing and GIS functions were used to monitor interactions and relationships between land use and land cover changes in the regional area. This study aims to determine the land degradation condition in the Ongi river basin of Uvurkhangai Province, Mongolia. Using GIS functions the climate factors: precipitation, air temperature, and vegetation condition and socio-economic factors: goat number, population number and mining activities were analyzed. Eighty percent of the study area is used as pasture land and for mining which means coupled human-environment systems are mainly causing poor land use and land degradation. We focused on developing a methodology for monitoring land degradation using both GIS and Remote Sensing tools. From 1998 to 2007 the vegetation indexes MSAVI2 and NDVI from SPOT/VEGETATION data were applied in order to determine vegetation cover change and the GIS conditional functions were used for mapping and analyzing climate and socio-economic factors, which both affect land degradation. When we combined vegetation indexes maps with the of climate and socioeconomic conditional maps from the GIS, we obtained a more complete understanding of the human impact on the Ongi River basin as well as the contribution of mining activity to the local economy.