As the uppermost behavioral pattern, the livelihood drives the human-earth system evolution. Therefore, it is the present research hotspot of the human-earth system science to study the interrelationship between human livelihood and eco-environment, livelihood analysis have attracted increasing interests as a new perception on explaining and solving the eco-environment problems in the eco-fragile region. In order to comprehensively understand research status of the relationship between the peasant's livelihood and eco-environment, the paper firstly analyzes the key driving factors for the farmer's livelihood transformation based on the sustainable livelihood analysis framework provided by the UK's Department for International Development (DFID).Then, the paper founds out the analytical framework of the ecological effect of the peasant's livelihood transformation, teases out the main research fields about impact of the peasant's livelihood transformation on eco-environment in recent years, the main research fields include impact of the peasant's livelihood transformation on the arable land utilization model and the rural residential land model, the impact on the rural life energy consumption model and on ecological restoration. Finally, the paper points out that the research on the relationship between the farmer's livelihood and eco-environment in the future should pay close attention to several questions which include the farmer's livelihood evolution rule and its regulatory mechanism, the mechanism of the farmer's livelihood transition on eco-environment, evaluation and monitoring the ecological effect of the farmer's livelihood transition and the sustainable livelihood mode establishment.