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The Yanqi Basin, one of the most productive agricultural areas, has a high population density in Xinjiang, Northwest China. Land use changes, mainly driven by oasis expansion, significantly impact ecosystem services and functions, but these effects are difficult to quantify. The valuation of ecosystem services is important to clarify the ecological and environmental changes caused by agriculturalization of oasis. This study aimed to investigate variations in ecosystem services in response to land use changes during oasis agricultural expansion activities in the Yanqi Basin from 1964 to 2009. The methods used were based on formula of ecosystem service value (ESV) and ESV coefficients. Satellite data were combined with the ESV coefficients to quantify land use changes and ecosystem service changes in the study area. Sensitivity analysis determined the effect of manipulating the coefficients on the estimated values. The results show that the total ESVs in the Yanqi Basin were $1,674, $1,692, $1,471, $1,732, and $1,603 million in 1964, 1973, 1989, 1999, and 2009, respectively. The net deline in ESV was $71 million in the past 46 years, but the ESVs of each types of landscape changed significantly. The aggregated ESVs of water areas and wetlands were approximately 80 % of the total ESV. Water supply and waste treatment were the two largest service functions and contributed approximately 65 % of the total ESV. The estimated ESVs in this study were elastic with respect to the value coefficients. Therefore, the estimations were robust in spite of uncertainties on the value coefficients. These significant changes in land use occur within the entire basin over the study period. These changes cause environmental problems, such as land degradation, vegetation degeneracy, and changes in aquatic environment.