Here we report the dynamic change of forestland in the late 1990’s in Sichuan Province. With the technologies of remote sensing and/or GIS, we obtained the land-use digital data of 1995 and 2000, the soil erosion data of 1995 and the data of slope grade, environment quality grade, geomorphic region, and administration districts. All of these data were further sampled into the raster data with a resolution of 100 meters and projected into the same coordination system with the same resolution. After extraction, overlay and statistical analyses, we characterized the dynamic forestland change in the late 1990’s. Our data indicate that the net increase of forestland was mainly resulted from the transformation of grassland and other land types; while most of the net decrease of forestland was attributed to cultivation, construction and residential land-uses. The net reduced forestland that totally amounts to 7972 hectares occurred in the regions with slight soil erosion, higher slope grade and mild environment quality, which were mainly located in the cities of Guangyuan, Mianyang and Dazhou, as well as other mountainous regions around the Sichuan basin. In contrast, the net increased forestland was mainly distributed in the regions with considerable to moderate soil erosion and the regions with lower slope grade and better environmental quality. Although partially improved, the general ecological function of the forestland was deleterious since the effect of the project of converting cultivated land into forestland was not functionally obvious until the late 1990’s. Based on our result, we suggest that the forest protection should be further reinforced in the northwestern plateau and southwestern mountainous regions of Sichuan province, especially the regions with higher slope and unstable ecological environment, which include Ganzi Tibetan Autonomous prefecture, Leshan city, Yaan city and Aba Jiang &Tibetan Autonomous prefecture.