The area we studied is Lake Yamzho Yumco Basin (28°27′-29°12′N, 90°08′-91°45′E), the largest inland lake basin in southern Tibetan Plateau, China. Using the SPOT-VGT NDVI vegetation index from 1998 to 2007 in the basin, the temporal and spatial variation characteristics of NDVI and its correlation with the major climatic factors (air temperature, precipitation) were analyzed. The results show that the average NDVI of the lake basin ranges from 0.12 to 0.31 and its seasonal change is obvious; the NDVI begins to rise rapidly in May and reaches the maximum value in early September. The average NDVI of the basin shows the slow increasing trend during 1998 to 2007, and it indicates that the eco-environment of the basin is recovering. The high value of NDVI has close relationships with water supply, altitude and vegetation types, so NDVI is relatively high near water sources and is the highest in meadow grassland. The summer air temperature and precipitation are the important climate elements that influence the vegetation in the basin, and the linear correlation coefficients between NDVI and air temperature and precipitation are 0.7 and 0.71, respectively. In recent years, warm and humid trend of the local climate is prevailing to improve the ecological environment in YamzhoYumco Basin.