We studied the Funiu Mountain, which is the water source of the Middle Route of the South-to-North Water Diversion Project in China, as a case example to analyze the characteristics of land use change and ecosystem service value (ESV) from 1990 to 2015 and explore the impact of land use change on ESV. The results were as follows.(1)During the study period, the construction land increased greatly, the cultivated land and grassland decreased greatly, and its extensive replacement with construction and cultivated land has occurred.(2)Forest land was the main ecological land, and the regulation service and support services were the main structure of the ESV of Funiu Mountain. The ESV high-value areas were distributed in the middle high altitude forest areas, and ESV low-value areas were distributed in the surrounding flat areas, which were mainly composed of cultivated land and construction land. Except for the slight increase of the ESV in forestland, water land, and unused land, the ESV of other land types decreased rapidly, resulting in the decrease of the ESV.(3)The ESV loss areas were mainly distributed in urban fringe of each county and the mining area of Luanchuan. The ESV could be improved by protecting forest land and water areas, returning cultivated land to forest land, sorting out rural residential land, and building green mines. Combining land use change maps with ESV change hotspot analysis could provide a new research framework for spatially studying the impact of land use change on ecosystem service value. This result could provide the basis for policy for land regulation in Funiu Mountain.