[Objective] The aim was to study the effects of urbanization and industrialization on farmland system in Shandong Peninsula. [Method] In Shandong Peninsula, the effects were studied and analyzed using remote sensing and image interpretation with spatial data analysis and statistic data analysis. [Result] During researching periods in Shandong Peninsula, wasteland area changed from decreasing to increasing; farmland area was declining; orchard and forestry areas were increasing, mainly resulting from political policies and benefits maximization of farmers. Meanwhile, chemical fertilizers and agricultural mechanization are more frequently applied with industrialization and urbanization, leading significant effects on environment, industry and urban. [Conclusion] More policies should be formulated to promote harmonious development of society, economy and environment.
