Deforestation, road construction and agricultural expansion threaten the giant panda (Ailuropoda melanoleuca) habitat, especially those outside the nature reserves. We explored the impact of conservation programs on giant panda habitat by comparing the two satellite images (Landsat TM, 30m in resolution) from 1999 to 2009 in Mupi Tibetan Town, Pingwu County, Sichuan Province based on remote sensing, GIS, and field investigations. The result showed that the area of coniferous forest, mixed coniferous & broadleaved forest, and broadleaved forest increased 10.87%, 4.40% and 40.24%, respectively, whereas the areas of shrub and grass/crop land decreased 10.74% and 33.24% respectively. The matrix of vegetation types changes revealed that the vegetation developed from grass/crop land → shrub → deciduous forest → mixed forest → conifer forest. Since Natural Forest Protection Program (NFPP) started from 1999, commercial logging was forbidden, and 12.7 km (74.71%) logging road was abandoned. Since the implementation of Grain to Green Program (GTGP), 54.12% household and 69.84% people living in high mountains area emigrated. The household fuelwood consumption declined from 5675kg in 1999 to 2736kg in 2009 since the equipment of biogas generators and other fuelwood saving facilities provided by the Integrated Conservation and Development Projects (ICDPs). The vegetation restored to be more suitable for giant panda. Although the habitat in the MTT was still fragmented by the Jiu-Loop-Line into two parts, the "most suitable" habitat area increased 28.87% (from 4671.63hm² to 6020.28hm²), and the habitat suitability index increased 16.85% (from 0.74 in 1999 to 0.80 in 2009), which indicated that the habitat recovered from low quality habitat to high quality habitat during the past decade. Habitat landscape diversity index declined from 1.29 to 1.18 during the period of 1999 to 2009, which means habitat fragmented slowly. The result of this paper demonstrated that giant panda habitat restoration is a process that eliminating the disturbance factors on giant panda through an integrated method. The NFPP removed the commercial timber cutting, which was thought to be the main threat to the giant panda habitat. The GTGP led people living in the remote areas to emigrate and to reduce the human disturbance. The ICDPs also reduced local people's pressure on forest through livelihood alternatives. To understand the wildlife conservation in area outside current nature reserves such as the MTT, it is necessary to carry out research about the habitat change under different land use scenarios.