Land degradation is a reduction in production capacity of lands and is considered as desertification in case of serious degradation conditions. A survey system was used in this study for land degradation mapping in Fars Province using four indicators: surface runoff, vegetation cover, Rainfall Utilization Efficiency (RUE) and soil erosion. RUE is estimated from the ratio of Net Primary Production () derived from MODIS data (MOD17A3) to annual rainfall, and vegetation data was obtained from monthly Normalized Difference Vegetation Index (NDVI) which was estimated from MODIS sensor data (MOD13A3).Surface runoff was estimated from the US Soil Conservation Model (SCS), which includes data on vegetation cover, precipitation, land cover, and soil digital map.Soil erosion as one of the most important figures of land degradation was calculated using vegetation cover, land use, geology and Digital Elevation Model (DEM).Then, these four indicators were combined to identify areas with the highest potential for destruction in Fars Province.Finally, alternative cost method was used to determine the economic losses caused by land degradation. Runoff volume increase caused by land degradation was multiplied by the costs necessary for artificial runoff control in the area. Results showed that considering the fact that each of the indicators is important in describing land degradation, the combination of vegetation map, RUE, runoff coefficient and erosion are useful to determine areas where degradation occurs. Regarding the results, the areas with a low risk of degradation are scattered across the Province with less than 10% of the Province's area. The risk of medium degradation has the biggest area in the Province (about 70%). The highest probability of degradation covers about 20% of the Province's area in south and southwest (the counties of Lar, Lamard, ZarinDasht, Khenj, Arsanjan and Qirkarzine), in east and southeast regions of Neyriz, Estahban and parts of Darab, in north and northeast (parts of Abadeh, Bavanat, Pasargad, Safa-Shahr), and in west and northwest (including parts of Farashband, Kazeroon and Nurabad), as well as some central parts of the province. Economic findings indicated that the annual economic losses due to land degradation and runoff increase in the region is 5281759.31 million Rials.According to the results, remote sensing technology can be used as an effective tool for assessing and monitoring land degradation, which is because of providing precise, calibrated, repeatable and cost-effective data for wide areas. Using the combination of four factors derived from satellite data which is shown in this study, it could be concluded that this method is of a high ability in land degradation studies within arid and semiarid regions. Key Words: Net Primary Production, Land degradation, MODIS, Rainfall Utilization Efficiency, Replacement cost method.