[Objective] The impacts of the gully reclamation project in Northern Shaanxi Province on the distribution of cropland and vegetation restoration were studied in order to provide scientific reference for the direction and optimization of cultivated land remediation in similar area.[Methods] Taking the Yan'an Gutun watershed of Yan'an City as a case study, based on ArcGIS and ENVI, visual interpretation and kernel density estimation was used, and NDVI were calculated.[Results] ① After the gully reclamation project, the cropland was more concentrated in valleys, the fragmentation of cropland was decreased, and the quality of cropland was improved. ② The proportion of low-slope cropland was increased. The structure of cropland had been optimized, but the high-slope cropland still occupied a certain amount and needed to be further optimized. ③ Based on the analysis of kernel density, the area of the middle and low density zone with high cropland quality increased, and the area of the middle and high density zone with low cropland quality decreased. The proportion of high-quality cropland increased. ④ Overall, NDVI in the Gutun watershed showed the law of "low at the foot of the hill while high on the hill". The vegetation situation in the watershed was improved after the gully reclamation project. ⑤ The vegetation in the area of returning farmland to forests and the slope control section had been improved well.[Conclusion] To a certain extent, the gully reclamation project has improved the quality of cultivated land and vegetation situation, but there are still some problems such as soil erosion, salinization and slope instability, etc. Gully reclamation project should be based on the construction of ecological civilization, weigh the advantages and disadvantages of various aspects and serve the high-quality development of the Loess Plateau.